Citi analyst Filippo Falorni has adjusted the price target for Coty (COTY, Financial) shares, reducing it from $8 to $6.50, while maintaining a Buy rating. The company recently announced solid fiscal third-quarter sales, yet revised its fiscal 2025 outlook downwards. The analyst points out that Coty currently faces a shortage of immediate growth drivers, with the investor day scheduled for June being pushed back and the potential delay of the Wella sale. Despite these challenges, Citi remains optimistic about the company's long-term prospects.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Coty Inc (COTY, Financial) is $7.19 with a high estimate of $13.50 and a low estimate of $4.00. The average target implies an upside of 57.32% from the current price of $4.57. More detailed estimate data can be found on the Coty Inc (COTY) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Coty Inc's (COTY, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coty Inc (COTY, Financial) in one year is $10.05, suggesting a upside of 119.91% from the current price of $4.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coty Inc (COTY) Summary page.
COTY Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coty Inc (COTY, Financial) reported strong growth in the Prestige fragrance category, particularly in the US and European markets, driven by increased penetration among new consumer segments.
- The company is actively working on cleaning up its baseline in the Prestige division to prepare for a robust pipeline of innovation for fiscal '26.
- Coty Inc (COTY) is seeing high single-digit to double-digit growth in mass fragrances, which are more profitable than color cosmetics.
- The company has implemented strategic organizational changes to enhance agility and decision-making, particularly in the US market.
- Coty Inc (COTY) is confident in its ability to manage tariff impacts through strategic sourcing, inventory management, and mid-single-digit price increases in the Prestige segment.
Negative Points
- Coty Inc (COTY) is experiencing a mid-single-digit decline in the global color cosmetics category, impacting the Consumer Beauty division.
- The company anticipates sales declines in the first half of fiscal '26, driven by continued pressure in the Consumer Beauty segment.
- Retailers are maintaining tight inventory levels, affecting Coty Inc (COTY)'s sell-in and sell-out trends, particularly in the US market.
- The company faces challenges in the US color cosmetics market due to intense competition from indie and dupe brands.
- Coty Inc (COTY) is dealing with pressure in the Prestige cosmetics market, particularly in Asia and Travel Retail, impacting overall performance.
