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Coty: A Deep Value Opportunity From A Likely Successful Turnaround
Summary
- In my opinion, Coty is an undervalued stock that currently trades at a 30-50% discount compared to its peers due to historical performance and its capital structure.
- The company hired a competent management team that has executed a comprehensive turnaround plan to generate sales growth while re-organizing its capital structure.
- Even if absolute sales growth could remain sluggish, I believe the success with deleveraging could trigger a 54% to 265% appreciation in COTY stock price.
Cross Sector Coverage of various Equities. My investment philosophy focuses on value. With experience in Metals Trading, I enjoy looking at the Metals & Minerals sector and analyzing their dynamics. I have been in public markets for 5+ years. None of the articles constitute investment advice.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COTY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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