Coty Announces Early Gucci License Transition

COTY has reached an agreement to exit the Gucci Beauty license early for $400 million. Deutsche Bank analysts maintain their Hold rating and $2 price target.

Key Takeaways

• 1.COTY entered an agreement with Kering to exit the Gucci Beauty license early for approximately $400 million.
• 2.The firm maintains a Hold rating and $2 price target, noting that the loss of Gucci's earnings power is offset by upfront cash and future cost-rationalization potential.

Table of Contents

• Valuation & Risks
• COTY Announces Early Gucci License Transition
• Estimate Changes & Valuation
• Financial Models
• BALANCE SHEET
• Appendix 1
• Important Disclosures
• Important Disclosures Required by U.S. Regulators
• Important Disclosures Required by Non-U.S. Regulators
• Analyst Certification
• Historical recommendations and target price: Coty, Inc. (COTY.N)
• Company rating dispersion and banking relationships
• Additional Information

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