RBC Capital remains positive on Coty’s positioning

RBC Capital keeps an Outperform rating and $14 price target on Coty after its Q1 like-for-like sale sales growth cut. Unexpected tighter retailer inventory management likely drove downside in the quarter, and RBC continues to believe in Coty’s story given its positioning in the high-growth fragrance category and multiple remaining incremental growth drivers including but not limited to category, distribution, and geographical expansion, the analyst tells investors in a research note.