Coty Inc. (NYSE:COTY) Faces Strategic Shifts and Financial Moves

Core Insights - Coty Inc. has been downgraded by Santander to a Neutral rating, with the stock price currently at $3.14, amidst significant strategic changes within the company [1] - The company has sold its remaining 25.8% stake in Wella to KKR & Co. Inc. for $750 million in cash, which is part of its strategy to concentrate on core beauty and fragrance businesses [2][5] - The sale is expected to enhance Coty's financial flexibility and reduce its net leverage to approximately three times by the end of 2025 [3][5] - Following the announcement of the Wella stake sale, Coty's stock saw an increase, indicating a positive market reaction despite the downgrade [4] Financial Position - The sale of the Wella stake is anticipated to provide Coty with the ability to reduce both short- and long-term debt [2] - Coty's market capitalization is approximately $2.74 billion, with a trading volume of 7,709,091 shares on the NYSE [4]