Coty (NYSE:COTY) Lowered to “Sector Perform” Rating by Royal Bank Of Canada

Coty (NYSE:COTY) was downgraded by equities researchers at Royal Bank Of Canada from an “outperform” rating to a “sector perform” rating in a research report issued on Thursday, Marketbeat.com reports. They currently have a $3.00 price target on the stock. Royal Bank Of Canada’s price objective points to a potential downside of 1.41% from the company’s current price.

A number of other equities research analysts also recently commented on the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Coty in a research report on Friday, August 7th. Morgan Stanley set a $2.50 target price on Coty in a research report on Thursday, May 7th. TD Cowen raised their price target on Coty from $2.30 to $2.90 and gave the stock a “hold” rating in a research note on Thursday, May 7th. Finally, Citigroup lifted their price target on Coty from $2.50 to $2.80 and gave the company a “neutral” rating in a report on Thursday, May 7th. Fourteen investment analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $3.35.

Coty Stock Up 11.1%

Shares of NYSE COTY opened at $3.04 on Thursday. The firm has a market cap of $2.68 billion, a P/E ratio of -4.91, a price-to-earnings-growth ratio of 0.79 and a beta of 0.97. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.49 and a current ratio of 0.82. Coty has a 1 year low of $1.82 and a 1 year high of $4.93. The firm’s 50 day moving average price is $2.43 and its 200 day moving average price is $2.36.

Coty (NYSE:COTY) last issued its quarterly earnings results on Wednesday, August 19th. The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.01). Coty had a negative net margin of 9.20% and a positive return on equity of 4.59%. The business had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same quarter last year, the firm posted ($0.05) earnings per share. The company’s revenue was up 1.3% on a year-over-year basis. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. As a group, sell-side analysts anticipate that Coty will post 0.22 earnings per share for the current year.

Hedge Funds Weigh In On Coty

Hedge funds and other institutional investors have recently modified their holdings of the company. Hsbc Holdings PLC lifted its position in Coty by 2,291.6% during the fourth quarter. Hsbc Holdings PLC now owns 583,366 shares of the company’s stock valued at $1,816,000 after buying an additional 558,974 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Coty by 5.8% in the fourth quarter. Vanguard Group Inc. now owns 39,903,562 shares of the company’s stock worth $122,903,000 after acquiring an additional 2,199,420 shares in the last quarter. Renaissance Technologies LLC raised its stake in shares of Coty by 177.6% in the 1st quarter. Renaissance Technologies LLC now owns 1,311,687 shares of the company’s stock valued at $2,636,000 after acquiring an additional 839,257 shares during the period. Maverick Capital Ltd. purchased a new position in shares of Coty in the 1st quarter valued at $2,536,000. Finally, First Trust Advisors LP raised its stake in shares of Coty by 827.5% in the 1st quarter. First Trust Advisors LP now owns 2,018,890 shares of the company’s stock valued at $4,058,000 after acquiring an additional 1,801,209 shares during the period. 42.36% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Coty

Here are the key news stories impacting Coty this week:

• Positive Sentiment: Fourth-quarter revenue rose approximately 1% year over year to $1.27 billion, exceeding the $1.19 billion analyst consensus. Both Prestige and Consumer Beauty revenue increased 1%, supported by resilient fragrance and cosmetics demand. Coty beats quarterly revenue, calls fiscal 2027 transition year
• Positive Sentiment: Coty reported $116 million of fourth-quarter operating cash flow and $72.6 million of free cash flow. For fiscal 2026, operating cash flow reached $537.8 million and free cash flow totaled $348.2 million, highlighting the benefit of cost controls. Coty Announces Fourth Quarter Fiscal Year 2026 Results
• Positive Sentiment: The planned transition of the Gucci Beauty license back to Kering is expected to provide Coty with approximately $400 million in proceeds, plus additional inventory proceeds, potentially supporting deleveraging and portfolio restructuring. Coty Q4 Revenue Rises as Net Loss Reaches $144.3 Million
• Neutral Sentiment: Coty appointed Soraya Benchikh as chief financial officer, effective September 1, succeeding Laurent Mercier. The change accompanies a broader operating overhaul intended to bring decisions closer to local markets and simplify research, development and supply-chain operations. Coty Appoints Soraya Benchikh Chief Financial Officer
• Negative Sentiment: Adjusted EPS was a $0.02 loss, missing the $0.01-loss consensus, while reported net loss widened to $144.3 million, or $0.16 per diluted share. Fiscal-year revenue fell 2% to $5.81 billion and net loss totaled $618 million. Coty Stock Slips After Wider-Than-Expected Q4 Loss
• Negative Sentiment: Management called fiscal 2027 a transition year and expects first-quarter like-for-like revenue to decline by a low- to mid-single-digit percentage. EPS guidance of $0.11–$0.13 is below the $0.14 consensus, reinforcing concerns about weaker demand and the brand-portfolio reset. Coty Looks to Finish Strategic Review
• Negative Sentiment: A shareholder litigation firm is investigating whether Coty executives and directors misrepresented slowing growth, margin pressure and weakness in Consumer Beauty and Prestige fragrances, adding a legal overhang. Kuehn Law investigation of 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.