Even with the mid-single-digit percentage uptick in the share price after the earnings release, we continue to think the name offers an attractive entry point.
New CEO Pierre Laubies should be able to leverage his experience to help Coty successfully integrate the assets acquired from Procter & Gamble while extracting cost synergies and reducing its debt load.
While the price paid was excessive, we're constructive on the longer term opportunities the investment in leading cannabis firm Canopy Growth could yield.
We remain impressed by the firm’s beer business, but shares are not a bargain.
Sonia Vora
More About Sonia Vora
Sonia Vora is an equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers beverage stocks in the consumer sector. She joined Morningstar in 2014.
Vora holds a bachelor’s degree in economics from the University of Chicago.