Coty (NYSE:COTY) Inc. shares have faced a significant downturn, touching a 52-week low of $7.51, as the beauty giant grapples with market headwinds. Over the past year, the company's stock has seen a notable decline, with a 1-year change showing a decrease of 20.44%. This recent low point reflects investor concerns over various factors impacting the consumer goods sector, including shifting consumer trends and economic pressures that have challenged Coty's ability to maintain its previously held market positions. The company, known for its cosmetics and fragrances, continues to navigate through a complex retail environment, aiming to revitalize its brand and regain momentum in the competitive beauty industry.
In other recent news, Coty Inc . has seen several adjustments to its stock outlook from different analyst firms. DA Davidson reduced Coty's price target to $14.50 from $17.00 but retained a Buy rating. This came after Coty's pre-announcement of its first-quarter fiscal year 2025 organic sales growth, which is expected to be between 4% and 5% year-over-year, slightly below the projected 6%. Despite this, Coty continues to forecast a fiscal year 2025 EBITDA growth of 9% to 11%.
Jefferies also maintained a Buy rating on Coty shares but decreased the price target from $12.00 to $11.00. Deutsche Bank reduced its price target to $12.00 from $14.00 while keeping a Buy rating. Stifel lowered the price target to $10 from the previous $11, maintaining a Hold rating on the stock.
Despite the lower than expected sales growth, Coty maintains its full-year adjusted EBITDA growth projections at 9%-11%. The company has also formed its first Scientific Advisory Board to guide skincare research and development. These are the recent developments for Coty Inc.
InvestingPro Insights
Coty's recent market performance aligns with the data and insights provided by InvestingPro. The stock's 52-week low is reflected in InvestingPro's data, which shows Coty trading near its 52-week low with a significant price decline over the past six months. According to InvestingPro, Coty's stock has experienced a 32.71% price total return decline over the last six months, underscoring the challenges mentioned in the article.
Despite these headwinds, InvestingPro Tips highlight some positive aspects. One tip suggests that Coty's net income is expected to grow this year, which could potentially help the company recover from its current market position. Additionally, Coty boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 64.39% for the last twelve months as of Q4 2024. This strong margin could provide Coty with some financial flexibility as it navigates the challenging retail environment.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Coty, providing a deeper understanding of the company's financial health and market position.
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