Coty ( NYSE: COTY ) broke higher in early trading on Monday after Piper Sandler upgraded the cosmetics stock to an Overweight rating after having it slotted at Neutral.
Analyst Korinne Wolfmeyer and team thinks the macroeconomic backdrop is improving for Coty ( COTY ).
"Since launching on COTY roughly six months ago, we’ve seen a number of developments transpire and seen the macro environment move in a direction that we think both position COTY well for the next 12+ months and give us greater comfort in pushing this name than we did back in June."
In addition, Wolfmeyer expects Coty's ( COTY ) high exposure to China and travel retail will help it outpace retail sector peers. Also of note, Coty's ( COTY ) diversified portfolio is expected to protect it from consumers trading down in a recessionary environment.
Piper Sandler set a price target of $10 on Coty ( COTY ) to imply more than 15% upside potential.
Coty ( COTY ) showed a 2.75% gain in opening trades on Monday.
See all the valuation metrics on Coty.
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Coty rallies after Piper Sandler upgrades to Overweight rating