Analyst Susan Anderson of Canaccord Genuity maintained a Buy rating on Coty (COTY – Research Report), retaining the price target of $8.00.
Susan Anderson’s rating is based on Coty’s strategic initiatives aimed at cost savings and operational efficiency. The company has announced an additional phase of its “All-in to Win” program, which is expected to generate significant cost savings of $130 million before tax by FY27. These savings are incremental to the previously planned $120 million in FY25, leading to a total of $500 million in savings over the period from FY25 to FY27. This move is seen as a response to the current market conditions, including a normalizing beauty market and potential tariff uncertainties.
Despite challenges in the consumer segment, particularly with mass cosmetics demand softening in the US, Coty’s valuation appears attractive. The stock is trading at approximately 9.5 times its FY2 earnings estimates, which is lower compared to its beauty industry peers that trade in the high-teens. This valuation, combined with the company’s cost-saving measures and the resilience of prestige fragrance demand, underpins Susan Anderson’s Buy rating for Coty.
According to TipRanks, Anderson is a 5-star analyst with an average return of 14.3% and a 40.45% success rate. Anderson covers the Consumer Cyclical sector, focusing on stocks such as e.l.f. Beauty, Helen Of Troy, and Inter Parfums.
In another report released on April 22, Jefferies also maintained a Buy rating on the stock with a $6.00 price target.