Is Coty a Buy?

 

Coty Inc. (COTY) NYSE  generates roughly $8.4 billion in annual revenues.

A partnership with KKR delivers immediate deleveraging via $1 billion direct investment and $2.5 billion net cash proceeds from Wella transaction, lowering Coty’s net debt/adjusted EBITDA from ~5.6x to ~4.5x on a pro forma basis. [i]

(COTY) NYSE will reinforce its leadership positions through innovation in fragrances and adjacent categories, a focus on the premium end of its portfolio, and the e-commerce development of the Prestige Beauty franchise, which encompasses iconic brands, such as Calvin Klein, Hugo Boss, Burberry, and Gucci, as well as the recent addition of Kylie Beauty, with its direct to consumer business model and 178 million followers on Instagram.[ii]

Cody is a global leader and number three in color cosmetics, number two in salon hair care, and number one in fragrances.

Peter Harf serves as Chairman and Chief Executive Officer. Between 1993 and 2001 he was Chief Executive of Coty. Peter is Managing Partner and Chairman of JAB and has extensive industry experience through his previous roles as Deputy Chairman of Reckitt Benckiser and Chairman of AB InBev. He is also a former Board member of Burger King.[iii]

 

Top Institutional Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Group, Inc. (The)          47,821,019           Mar 30, 2020      6.27%    246,756,458

Bank Of New York Mellon Corporation    29,515,038           Mar 30, 2020      3.87%    152,297,596

Blackrock Inc.     20,969,896           Mar 30, 2020      2.75%    108,204,663

State Street Corporation               16,788,409           Mar 30, 2020      2.20%    86,628,190

JP Morgan Chase & Company     14,255,960           Mar 30, 2020      1.87%    73,560,753

Top Mutual Fund Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Total Stock Market Index Fund              8,492,762             Dec 30, 2019       1.11%    95,543,572

Vanguard Mid-Cap Index Fund   7,775,887             Mar 30, 2020      1.02%    40,123,576

Vanguard 500 Index Fund            6,097,186             Mar 30, 2020      0.80%    31,461,479

Vanguard Fenway Funds-Equity Income Fund     6,028,050             Mar 30, 2020      0.79%    31,104,738

JP Morgan Mid Cap Value Fund  4,579,174             Feb 28, 2020       0.60%    42,265,776

JP Morgan Value Advantage Fund             3,438,469             Feb 28, 2020       0.45%    31,737,068

Vanguard Strategic Equity Fund 3,305,989             Mar 30, 2020      0.43%    17,058,903

[i] https://www.coty.com/in-the-news/press-release/coty-announces-strategic-transformation-and-definitive-agreement-kkr-wella

 

[ii] https://www.coty.com/in-the-news/press-release/coty-announces-strategic-transformation-and-definitive-agreement-kkr-wella

 

[iii] https://www.coty.com/our-story/coty-leaders/peter-harf

CWEB Analysts believe that (COTY) NYSE has room to grow and will initiate a Hold rating.

CWEB.com is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, CWEB.com relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

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CWEB.com is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, CWEB.com relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

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