Shares of Coty (NYSE: COTY) closed 18% higher yesterday to extend its impressive bullish run and total monthly gains to over 115%.
Coty share price initially lost about 80% during the pandemic-driven selloff in the spring. However, a series of positive catalysts helped the stock to recover and print the highest levels recorded since April.
City analyst Wendy Nicholson upgraded COTY from “Neutral” to “Buy” and elevated the price target from $4.50 to $10, citing accelerating growth, improving margins, and deleveraging in its balance sheet.
Earlier, Coty agreed to sell its Wella business to KKR for $2.5 billion. Funds from this sale will be used to reduce the debt. Coty owns a majority stake in Kylie Jenner’s Kylie Cosmetics and a 20% stake in Kim Kardashian's beauty business.
On November 06, Coty reported EPS of $0.11 per share to beat the market’s expectations. Revenue fell to $1.69 billion to easily beat $1.10 billion that analysts expected.
“Across all metrics, both operational and financial, our results improved significantly from the low point of last quarter and came in at or ahead of our expectations. Month after month, we are seeing net revenues sequentially improving with solid orders in advance of the holiday season,” Sue Nabi, CEO of Coty said in a statement.
PEOPLE WHO READ THIS ALSO VIEWED: