Barclays downgrades Coty to Underweight after negative sales revision

Barclays downgraded Coty (COTY) to Underweight from Equal Weight with a price target of $7, down from $8. The firm is concerned Coty’s negative sales revision this quarter may not be its last and that the company is “pushing too hard to achieve its bottom line targets.” Coty effectively lowered its medium-term algorithm last night, but notably, this significant change was not detailed in the press release, the analyst tells investors in a research note. Barclays says that “dramatic” cost cutting needed to protect EBITDA and yet another adjustment to the operating plan, it sees little reason to remain Equal Weight on the shares.