Coty (NYSE:COTY) Cut to “Sector Perform” at Royal Bank Of Canada

Royal Bank Of Canada cut shares of Coty (NYSE:COTY) from an outperform rating to a sector perform rating in a research report released on Thursday, MarketBeat.com reports. Royal Bank Of Canada currently has $3.00 price objective on the stock.

Other analysts have also issued research reports about the company. Morgan Stanley set a $2.50 price target on Coty in a report on Thursday, May 7th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Coty in a research note on Friday, August 7th. TD Cowen boosted their price objective on shares of Coty from $2.30 to $2.90 and gave the company a “hold” rating in a research report on Thursday, May 7th. Finally, Citigroup increased their target price on shares of Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Twelve analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $3.37.

Coty Stock Performance

Coty stock opened at $2.74 on Thursday. The company’s 50-day moving average price is $2.46 and its 200-day moving average price is $2.36. Coty has a twelve month low of $1.82 and a twelve month high of $4.56. The company has a quick ratio of 0.49, a current ratio of 0.75 and a debt-to-equity ratio of 0.96. The company has a market cap of $2.41 billion, a PE ratio of -3.91, a price-to-earnings-growth ratio of 0.79 and a beta of 0.97.

Coty (NYSE:COTY) last announced its quarterly earnings results on Wednesday, August 19th. The company reported ($0.02) EPS for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.01). The business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.19 billion. Coty had a negative net margin of 10.42% and a positive return on equity of 5.68%. The firm’s revenue was up 1.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.05) EPS. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. On average, equities research analysts forecast that Coty will post 0.34 EPS for the current fiscal year.

Institutional Investors Weigh In On Coty

Several large investors have recently added to or reduced their stakes in the stock. AlphaGrep UK Ltd bought a new position in Coty in the 2nd quarter worth about $25,000. Three Seasons Wealth LLC boosted its holdings in shares of Coty by 17.1% in the second quarter. Three Seasons Wealth LLC now owns 91,957 shares of the company’s stock valued at $199,000 after purchasing an additional 13,395 shares during the period. Nolet Wealth Management LLC bought a new position in Coty in the second quarter worth approximately $108,000. Tactive Advisors LLC grew its stake in Coty by 23.7% in the second quarter. Tactive Advisors LLC now owns 145,008 shares of the company’s stock worth $313,000 after purchasing an additional 27,799 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its stake in Coty by 11.1% in the second quarter. Assenagon Asset Management S.A. now owns 6,871,724 shares of the company’s stock worth $14,843,000 after purchasing an additional 684,052 shares in the last quarter. 42.36% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Coty reported fiscal fourth-quarter revenue of approximately $1.27 billion, ahead of Wall Street expectations, while its Prestige segment revenue increased 1%. Management also said the quarter was ahead of expectations. Coty’s fourth-quarter performance ahead of expectations
• Positive Sentiment: Management outlined plans to invest in innovation and brands, targeting portfolio growth by 2028. Coty expects fiscal 2027 EBITDA and free cash flow to remain broadly close to fiscal 2026 levels, despite an estimated $20 million to $30 million impact from higher oil-related costs. Coty targets portfolio growth by 2028
• Neutral Sentiment: Coty named Soraya Benchikh as chief financial officer. Benchikh’s experience in global consumer businesses could support the company’s turnaround, although the appointment comes as Coty begins a broader business overhaul. Coty names Soraya Benchikh CFO
• Negative Sentiment: Quarterly loss per share was wider than expected, and full-year revenue declined about 2% amid weaker Consumer Beauty demand and margin pressure. Coty also characterized fiscal 2027 as a transition year and withheld annual guidance, reducing earnings visibility. Coty sees weak quarterly profit
• Negative Sentiment: The planned exit from the Gucci Beauty license is creating a significant portfolio transition risk and may weigh on future sales, while analysts remain concerned about weak like-for-like growth and profitability. Coty’s Q4 loss wider than expected
• Negative Sentiment: Royal Bank of Canada downgraded COTY from “outperform” to “sector perform,” citing mixed results and margin pressures, although it assigned a $3.00 price target. Hold rating maintained on Coty

About Coty

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty’s portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company’s product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.