York Capital's Schwartz sees growth in beauty company Coty

Daniel Schwartz, managing partner at York Capital Management, on Wednesday recommended investing in beauty company Coty, citing a low valuation and high growth prospects.

"Buy Coty. We think it's a multi-year growth story," Schwartz told the Sohn Investment Conference in Tel Aviv.

He noted that Coty is the third largest beauty company behind L'Oreal and Estee Lauder but has the ability to change the margin paradigm in the beauty space.

Coty's shares have struggled, Schwartz said, due to technical effects from an exchange offer with Procter and Gamble in September and providing an opportunity to buy Coty stock at a "depressed" price.