Coty (NYSE:COTY) Sets New 52-Week High on Analyst Upgrade

Key Points

• Coty hit a 52-week high, trading as high as $4.10 after RBC raised its price target from $3.00 to $3.50, while maintaining a “sector perform” rating.
• The company beat quarterly earnings and revenue expectations, reporting EPS of $0.16 and revenue of $1.56 billion; however, revenue fell 1.4% year over year, margins weakened, and Coty flagged a soft second quarter.
• Analyst sentiment remains cautious: MarketBeat reports a consensus “Reduce” rating and an average price target of $3.25, below the stock’s recent trading price.

Coty (NYSE:COTY - Get Free Report)'s stock price reached a new 52-week high during trading on Friday after Royal Bank Of Canada raised their price target on the stock from $3.00 to $3.50. Royal Bank Of Canada currently has a sector perform rating on the stock. Coty traded as high as $4.10 and last traded at $4.0250, with a volume of 5,676,360 shares trading hands. The stock had previously closed at $3.91.

A number of other research analysts have also recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $3.00 target price on shares of Coty in a research note on Friday, August 21st. Morgan Stanley lifted their price target on shares of Coty from $2.50 to $2.75 and gave the stock an "equal weight" rating in a report on Tuesday, August 25th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $2.60 price target on shares of Coty in a report on Thursday, August 20th. TD Cowen assumed coverage on Coty in a research note on Friday, October 30th. They issued a "hold" rating on the stock. Finally, Jefferies Financial Group increased their price objective on Coty from $2.40 to $2.95 and gave the company a "buy" rating in a report on Monday, October 19th. One equities research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of $3.25.

Coty News Summary

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Results beat expectations. Coty reported $0.16 per share versus the $0.12 consensus, while revenue of $1.56 billion topped estimates of $1.53 billion. The company also cited stronger free cash flow. Read More.
• Positive Sentiment: Prestige brands showed signs of recovery. Core prestige returned to growth, narrowing Coty’s overall sales decline and offering investors evidence that its business transition may be progressing. Read More.
• Neutral Sentiment: Longer-term strategic developments remain in view. Coty expects to complete its strategic review by the end of 2026; coverage also reported a $400 million Gucci-related deal. Read More.
• Negative Sentiment: Operating headwinds persist. Revenue declined 1.4% year over year, and margins weakened. Coty also forecast a soft second quarter as higher costs weigh on its turnaround, raising concerns about near-term profitability. Read More.
• Negative Sentiment: RBC’s price target remains below the recent trading level. The bank raised its target from $3.00 to $3.50 but kept a “sector perform” rating, signaling limited upside at the target. Read More.

Institutional Trading of Coty

Several institutional investors and hedge funds have recently made changes to their positions in COTY. Assenagon Asset Management S.A. raised its stake in shares of Coty by 11.1% during the second quarter. Assenagon Asset Management S.A. now owns 6,871,724 shares of the company's stock valued at $14,843,000 after acquiring an additional 684,052 shares during the last quarter. M&G PLC increased its holdings in Coty by 7.9% during the 3rd quarter. M&G PLC now owns 3,675,063 shares of the company's stock valued at $9,592,000 after purchasing an additional 268,653 shares during the period. Pacer Advisors Inc. increased its holdings in Coty by 2,300.9% during the 1st quarter. Pacer Advisors Inc. now owns 2,953,407 shares of the company's stock valued at $5,936,000 after purchasing an additional 2,830,397 shares during the period. First Trust Advisors LP raised its position in Coty by 827.5% during the 1st quarter. First Trust Advisors LP now owns 2,018,890 shares of the company's stock valued at $4,058,000 after purchasing an additional 1,801,209 shares during the last quarter. Finally, Renaissance Technologies LLC raised its position in Coty by 177.6% during the 1st quarter. Renaissance Technologies LLC now owns 1,311,687 shares of the company's stock valued at $2,636,000 after purchasing an additional 839,257 shares during the last quarter. Hedge funds and other institutional investors own 42.36% of the company's stock.

Coty Price Performance

The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.42 and a current ratio of 0.75. The business has a 50-day simple moving average of $2.92 and a 200 day simple moving average of $2.55. The firm has a market cap of $3.54 billion, a P/E ratio of -6.19, a price-to-earnings-growth ratio of 0.67 and a beta of 0.83.

Coty (NYSE:COTY - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $1.56 billion for the quarter, compared to analyst estimates of $1.53 billion. Coty had a positive return on equity of 7.05% and a negative net margin of 9.74%. The business's quarterly revenue was down 1.4% compared to the same quarter last year. During the same period last year, the company earned $0.12 EPS. On average, analysts anticipate that Coty will post 0.31 earnings per share for the current fiscal year.

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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