Coty Facing Big-League Challenges With P&G's 'Orphan' Brands
This article was originally published in The Rose Sheet
Executive Summary
Investor reactions have been mixed, and Coty's stock down, following the firm's transformative $12.5 deal for 43 P&G beauty brands. Deutsche Bank's Bill Schmitz is confident that longer-term opportunities outweigh immediate risks, but getting up to speed and reinvesting in Wella and Clairol and "cleaning up" distribution of P&G's prestige fragrances will be critical to the firm's success, the analyst says.