Coty (NYSE:COTY) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Coty from “hold” to “buy,” though the broader analyst consensus remains “Reduce,” with a $3.25 average price target.
• Coty’s fiscal first-quarter adjusted EPS of $0.16 and revenue of $1.56 billion both beat analyst expectations; its core Prestige brands returned to growth.
• Despite the earnings beat, revenue fell 1.4% year over year and margins weakened, signaling continuing challenges for the company.

Coty (NYSE:COTY - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other equities analysts also recently commented on the stock. Morgan Stanley increased their target price on shares of Coty from $2.50 to $2.75 and gave the stock an "equal weight" rating in a research report on Tuesday, August 25th. TD Cowen began coverage on Coty in a research report on Friday, October 30th. They set a "hold" rating for the company. Citigroup lifted their target price on shares of Coty from $2.80 to $3.00 and gave the stock a "neutral" rating in a report on Wednesday, October 14th. The Goldman Sachs Group restated a "neutral" rating and set a $2.60 price target on shares of Coty in a report on Thursday, August 20th. Finally, Weiss Ratings lowered Coty from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 30th. One equities research analyst has rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $3.25.

Coty Stock Performance

Shares of Coty stock opened at $4.03 on Friday. The company has a quick ratio of 0.42, a current ratio of 0.75 and a debt-to-equity ratio of 0.96. Coty has a 52 week low of $1.82 and a 52 week high of $4.10. The firm's 50 day moving average is $2.94 and its two-hundred day moving average is $2.55. The firm has a market capitalization of $3.54 billion, a P/E ratio of 16.57, a P/E/G ratio of 0.67 and a beta of 0.83.

Coty (NYSE:COTY - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.12 by $0.04. Coty had a negative net margin of 10.42% and a positive return on equity of 5.68%. The firm had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.53 billion. During the same period in the prior year, the company earned $0.12 EPS. The firm's revenue was down 1.4% on a year-over-year basis. Research analysts forecast that Coty will post 0.31 EPS for the current fiscal year.

Hedge Funds Weigh In On Coty

Several large investors have recently bought and sold shares of COTY. Fifth Third Bancorp increased its stake in shares of Coty by 4.0% in the 3rd quarter. Fifth Third Bancorp now owns 89,855 shares of the company's stock worth $235,000 after acquiring an additional 3,424 shares in the last quarter. Maryland State Retirement & Pension System lifted its holdings in shares of Coty by 52.2% during the third quarter. Maryland State Retirement & Pension System now owns 84,161 shares of the company's stock valued at $220,000 after purchasing an additional 28,874 shares during the last quarter. Illinois Municipal Retirement Fund purchased a new position in shares of Coty during the third quarter valued at approximately $525,000. Gryphon Financial Partners LLC bought a new stake in shares of Coty in the 3rd quarter worth approximately $29,000. Finally, M&G PLC boosted its position in shares of Coty by 7.9% in the 3rd quarter. M&G PLC now owns 3,675,063 shares of the company's stock worth $9,592,000 after purchasing an additional 268,653 shares in the last quarter. 42.36% of the stock is currently owned by institutional investors.

Key Headlines Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fiscal Q1 adjusted earnings were $0.16 per share, ahead of the $0.12 consensus, while revenue of $1.56 billion also topped expectations. Coty said its core Prestige brands returned to growth, narrowing the overall sales decline. Coty reports narrower sales decline
• Positive Sentiment: Stronger cash flow and lower debt offered some support amid the turnaround, according to earnings coverage. Coty Q1 earnings coverage
• Neutral Sentiment: Management indicated it expects to complete its strategic review by the end of 2026; coverage also cited a $400 million Gucci deal. The outcome of the review remains uncertain. Strategic review and Gucci deal
• Negative Sentiment: Revenue still fell year over year and margins weakened, highlighting ongoing pressure despite the earnings beat. Coty Q1 sales and margins
• Negative Sentiment: RBC raised its price target to $3.50 but maintained a “sector perform” rating; that target is below the cited $4.03 share price. Another analysis characterized Coty as trading above estimated fair value, adding valuation concerns. RBC target update Coty fair value analysis

About Coty

Coty Inc is a global beauty company that develops, manufactures and markets fragrances, cosmetics, skin care and body-care products. Its portfolio includes luxury, prestige and mass-market brands, with products sold through department stores, specialty retailers, e-commerce platforms and other distribution channels.

The company's brands have included CoverGirl, Rimmel London, Max Factor, Bourjois, Gucci Beauty, Calvin Klein, Marc Jacobs, Burberry, Hugo Boss and Chloé, among others. Coty also participates in professional beauty through hair-care and salon brands, including the Wella portfolio.

Founded in Paris in 1904 by François Coty, the company built its early reputation in fragrance before expanding into broader beauty categories and international markets.

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