Bank of America has significantly revised its outlook for Coty (COTY, Financial), lowering their rating from Buy to Underperform. The price target for Coty's stock has been adjusted downward to $4.50 from the previous $9. This change reflects growing apprehensions about the company's global market share and the impact of weakening consumer spending on its business prospects.
Despite Coty's recent success in the Prestige fragrance sector, the anticipated slowdown in growth has prompted a reassessment of the company's valuation. This includes both its high-end and Consumer Beauty segments. The decision illustrates broader concerns about the current economic environment and its influence on Coty's market performance.
