Citi trims Coty target, opens ‘positive catalyst watch’

Citi analyst Filippo Falorni lowered the firm’s price target on Coty to $12 from $13 and keeps a Neutral rating on the shares. The analyst also opened a “30-day positive catalyst watch” on the shares. The analyst believes Coty is relatively insulated from the category weakness highlighted by Ulta Beauty (ULTA) given the U.S. is only 28% of sales and Prestige Fragrances globally represent 55% of total Coty net sales, which has seen less headwinds. Citi thinks Coty can post above-consensus sales growth and EBITDA in fiscal Q3, which could drive a positive stock reaction off a “depressed base.”