Coty: Challenged And Interesting At The Same Time

Coty: Challenged And Interesting At The Same Time Summary Coty Inc. has seen significant shareholder value destruction, with shares now near pandemic lows despite past deleveraging efforts. The recent Wella stake sale simplifies COTY's structure but at a disappointing headline price, with additional contingent proceeds possible. Prestige segment remains stable with 20% margins, but the beauty segment struggles with declining sales and just 4% margins. JAB's majority stake creates an overhang, limiting upside for minority shareholders; I remain cautious despite improved risk-reward. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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