Coty price target lowered to $10 from $12 at RBC Capital

RBC Capital lowered the firm’s price target on Coty (COTY) to $10 from $12 but keeps an Outperform rating on the shares. The company’s guidance for the first half was underwhelming, and the absence of a FY guide may have been off-putting for investors, but compared with where the stock is trading now, similar to 2020 levels when Sue Nabi became CEO, RBC believes that shares are undervalued, the analyst tells investors in a research note. Coty fundamentals have vastly been improved since 2020, warranting higher valuation despite near-term dynamics, the firm added.