Citi smells the fragrance of success, starts Puig at 'buy'
** Citigroup initiates Spanish fashion and perfumes company Puig PUIGb.MC with "buy", saying it can continue to benefit from the fragrance category boom for at least two more years
** Citi sees potential for a further 300bps growth from Puig enhancing its core fragrance portfolio and continuing the roll-out of the Charlotte Tilbury skincare and makeup brand
** This would allow the company to buy time to expand its distribution network and strengthen its makeup and skincare segments, the broker adds
** Potential growth stands out in an industry where most peers are struggling to reignite growth due to weak China, pricing rollover and U.S. derma slowdown, it says
** "We believe Puig remains an attractive name in the beauty space at the moment, offering value accretion while China recovers and before the next beauty cycle arises" - Citi
** It sets Puig's PT at 23 euros vs 19.93 euros at Monday's close
** Ten out of 11 analysts rate Puig "strong buy" or "buy", with one at "hold" - LSEG
Reporting by Marta Serafinko
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