Coty initiated with a Neutral at Goldman Sachs

Goldman Sachs initiated coverage of Coty (COTY) with a Neutral rating and $9 price target The firm holds a positive long-term view on the beauty category and sees attractive organic growth potential supported by innovation and the category’s convergence with health and wellness, which it says has increased the addressable market for all players. Goldman favors “consistent market share gainers with strong innovation pipelines,” and highlights Elf (ELF) as a name to own. The firm has a more balanced view on Coty as it works to better understand the path to sustained sales growth improvement.