#2 - Coty (NYSE:COTY)
Coty (NYSE: COTY) - This battered stock has a negative return of 59% for 2018 as opposed to a positive 12% return in 2017. The selloff accelerated when its most recent earnings report showed disappointing results with revenue down nearly 8% and revenue down over 9%. The company cited supply chain disruptions as the main reason behind its decline in organic sales. However, they also said the disappointing sales results were limited to its consumer beauty segment and not their luxury category which showed growth. This is important because that segment is where the growth is at in the cosmetic industry. The company continues to stand by its forecast of $750 million in cost saving by 2020 from its acquisition of the Cover Girl brand as well as other brands from Procter & Gamble. The question for investors is how long are they willing to wait? Has the stock hit a bottom? Maybe so. But with this stock so beaten down right now, it would seem any positive news on the supply chain issues should turn market sentiment.
About Coty
Coty Inc, together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates through Prestige and Consumer Beauty segments. The company provides fragrance, color cosmetics, and skin and body care products. It offers Prestige segment products primarily through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, philosophy, SKKN BY KIM, and Tiffany & Co brands.
Read More - Current Price
- $11.71
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $13.19 (12.7% Upside)
