Coty: Hold Rating Reaffirmed as Analyst Maintains $2.50 Price Target Amid Mixed Fundamentals

Canaccord Genuity analyst Susan Anderson maintained a Hold rating on Coty yesterday and set a price target of $2.50.

Susan Anderson has given his Hold rating due to a combination of factors that highlight both progress and remaining risk. Coty modestly beat expectations on adjusted EBITDA and showed encouraging momentum in U.S. prestige cosmetics and improving consumer beauty sell-out trends, especially in color cosmetics. Management’s new “Coty. Curated” strategy, aimed at sharpening focus, cutting complexity, and reallocating investment, is another constructive step that could support margins and long-term growth.

At the same time, underlying sales trends remain weak, with like-for-like revenue still declining mid‑single digits and the prestige segment pressured by softer fragrance demand and Middle East headwinds. Gross margin is under strain from under-absorbed supply-chain costs, inventory write-downs, and freight and tariff pressures, while a promotional environment and prior retailer destocking add further uncertainty. Given this mixed setup, Anderson keeps a neutral stance, maintaining the $2.50 price target and waiting for evidence of sustainable, consistent top-line improvement before turning more constructive.

In another report released today, Citi also maintained a Hold rating on the stock with a $2.80 price target.

Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of COTY in relation to earlier this year.