TD Cowen analyst Oliver Chen has maintained their neutral stance on COTY stock, giving a Hold rating today.
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Oliver Chen has given his Hold rating due to a combination of factors impacting Coty’s performance. The company’s recent financial results showed a miss in earnings per share and a decline in like-for-like sales, particularly in the consumer beauty segment. This underperformance, coupled with challenges such as U.S. prestige underperformance and retailer destocking, has led to a cautious outlook.
Despite these challenges, Coty has shown resilience in its fragrance segment, holding strong market positions in both the prestige and mass fragrance categories. The company’s focus on affordable luxury and its ability to appeal to both high and low-income consumers through accessible price points are positive aspects. However, the overall valuation remains low compared to historical averages, and the company’s future success will depend on its ability to execute new product launches and capitalize on its fragrance portfolio. Therefore, the Hold rating reflects a balanced view of the potential risks and opportunities ahead for Coty.
In another report released today, Citi also downgraded the stock to a Hold with a $4.25 price target.