Critical Insights From Coty Analyst Ratings: What You Need To Know

Ratings for Coty COTY were provided by 6 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Coty, presenting an average target of $13.5, a high estimate of $17.00, and a low estimate of $11.00. Experiencing a 5.26% decline, the current average is now lower than the previous average price target of $14.25.

Deciphering Analyst Ratings: An In-Depth Analysis

A comprehensive examination of how financial experts perceive Coty is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Coty. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Coty compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Coty's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Coty's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Coty analyst ratings.

About Coty

Coty is a global beauty maker that focuses on fragrance (59% of sales) and color cosmetics (28%), with limited exposure to skincare (5%) and body care (8%). For the fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein, while its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. It also collaborates with social media celebrities Kim Kardashian and Kylie Jenner to launch makeup products bearing their names. By region, Coty generates close to 45% of sales from Europe, 42% from the Americas, and 13% from Asia-Pacific. German investment firm JAB is a controlling shareholder, with a 53% stake.

Coty: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Coty's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 7.5%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.

Net Margin: Coty's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.04% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Coty's ROE excels beyond industry benchmarks, reaching 0.01%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Coty's ROA excels beyond industry benchmarks, reaching 0.0%. This signifies efficient management of assets and strong financial health.

Debt Management: Coty's debt-to-equity ratio stands notably higher than the industry average, reaching 1.05. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.