Analyst Christopher Carey from Wells Fargo maintained a Hold rating on Coty (COTY – Research Report) and keeping the price target at $12.00.
Christopher Carey has given his Hold rating due to a combination of factors that include Coty’s solid fiscal third quarter performance alongside a less optimistic guidance for the fourth quarter. The third quarter showcased a slight outperformance in both top and bottom lines, continuing the company’s positive trajectory. However, Carey notes that the guidance for the forthcoming quarter reflects a low-to-mid single-digit growth, which may lead to some skepticism regarding the company’s momentum going forward.
Furthermore, while Coty’s long-term sales guidance appears robust at the higher end of the previously projected range, the adjusted EBITDA guidance shows only a modest increase. This discrepancy, along with concerns about market normalization, competitive pressures in the first half of the fiscal year 2025, and the potential headwinds from inventory laps, suggest a cautious outlook. In light of these considerations, Carey’s Hold rating reflects a balanced view of the company’s solid current performance weighed against the uncertainty of its near-term growth prospects.
In another report released today, Barclays also maintained a Hold rating on the stock with a $12.00 price target.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COTY in relation to earlier this year.
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Coty (COTY) Company Description:
Coty, Inc. engages in the manufacture, market, sale, and distribution of branded beauty products. It operates through the following segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care, and mass fragrances. The Luxury segment comprises of prestige fragrances, premium skincare, and premium cosmetics. The Professional Beauty segment consists hair and nail care products for salon professionals. The company was founded by Francois Coty in 1904 and is headquartered in New York, NY.
