COTY - Coty: Valuation Needs More Caution Despite Great Turnaround

2024-04-29 11:45:31 ET

Summary

• Coty has achieved an impressive financial turnaround after the company laid out a turnaround plan in July 2019.
• The company expects earnings growth to continue with ambitious FY2027 financial targets. I believe that investors should take the targets with caution.
• The stock's current valuation seems to be priced for too great earnings growth, and I believe that the price provides a weak risk-to-reward.

Coty Inc. ( COTY ) manufactures and sells beauty products in the United States as well as internationally. The company has a wide range of licensed and owned brands such as Calvin Klein, Burberry, Gucci, Hugo Boss, Marc Jacobs, and Adidas that Coty manufactures fragrances, make-up and other products....

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