Coty price target lowered to $9 from $10 at Wells Fargo

Wells Fargo analyst Chris Carey lowered the firm’s price target on Coty to $9 from $10 and keeps an Equal Weight rating on the shares after the company pre-announced a visibility conundrum. While the firm felt retailer de-stocking in a slowing category was a key risk, it is surprised at the speed of the slowdown in said category and the sharpness in retailer cuts. Coty now sees Q1 LFL revenue +4%-5% with EBITDA flat/modestly lower, with Q2 LFL to now grow only “moderately,” with “some growth acceleration” seen in the second half of the year but Coty not commenting on full year revenue guide, a nod to revenue visibility issues, despite re-affirming EBITDA +9%-11%.