Raymond James has downgraded Coty (COTY, Financial) from an "Outperform" to "Market Perform" rating, citing concerns over a sluggish earnings season for the beauty and personal care sectors. This decision reflects expectations of decelerating sales, particularly in the U.S., with a similar trend starting to manifest in both European and Latin American markets.
The firm highlighted that consumer demand is waning as individuals become more cautious in their spending on everyday products. Retailers are reportedly focusing on categories most susceptible to tariff-related price hikes, which adds further pressure to the sector’s outlook.
The downgrade by Raymond James comes as it revises its earnings estimates for Coty. This adjustment points to the challenges posed by difficult year-over-year comparisons, pressures within product categories, and margins that are perceived to have peaked. Consequently, Coty’s shares are expected to face headwinds in the near term due to these factors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 20 analysts, the average target price for Coty Inc (COTY, Financial) is $7.99 with a high estimate of $13.50 and a low estimate of $4.50. The average target implies an upside of 71.09% from the current price of $4.67. More detailed estimate data can be found on the Coty Inc (COTY) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Coty Inc's (COTY, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coty Inc (COTY, Financial) in one year is $10.01, suggesting a upside of 114.35% from the current price of $4.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coty Inc (COTY) Summary page.
