Demystifying Coty: Insights From 18 Analyst Reviews

During the last three months, 18 analysts shared their evaluations of Coty COTY, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 3 7 1 0
Last 30D 1 0 0 0 0
1M Ago 0 0 1 0 0
2M Ago 1 1 1 1 0
3M Ago 5 2 5 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $11.0, a high estimate of $14.50, and a low estimate of $7.00. This current average has decreased by 10.42% from the previous average price target of $12.28.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Coty among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Linda Bolton Weiser DA Davidson Maintains Buy $12.50 $12.50
Patty Kanada Goldman Sachs Announces Neutral $9.00 -
Oliver Chen TD Cowen Announces Hold $8.50 -
Linda Bolton Weiser DA Davidson Lowers Buy $12.50 $14.50
Olivia Tong Raymond James Lowers Outperform $11.00 $13.00
Lauren Lieberman Barclays Lowers Underweight $7.00 $8.00
Ashley Helgans Jefferies Lowers Buy $11.00 $12.00
Lauren Lieberman Barclays Lowers Equal-Weight $8.00 $10.00
Susan Anderson Canaccord Genuity Lowers Buy $12.00 $14.00
Linda Bolton Weiser DA Davidson Lowers Buy $14.50 $17.00
Andrea Teixeira JP Morgan Lowers Neutral $10.00 $11.00
Olivia Tong Raymond James Lowers Outperform $13.00 $14.00
Susan Anderson Canaccord Genuity Maintains Buy $14.00 $14.00
Nik Modi RBC Capital Maintains Outperform $14.00 $14.00
Chris Carey Wells Fargo Lowers Equal-Weight $9.00 $10.00
Mark Astrachan Stifel Lowers Hold $10.00 $11.00
Filippo Falorni Citigroup Lowers Neutral $10.00 $10.50
Ashley Helgans Jefferies Raises Buy $12.00 $11.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Coty. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Coty compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Coty's future value. Examining the current and prior targets provides insight into analysts' changing 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.

Discovering Coty: A Closer Look

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 44% of sales from Europe, 42% from the Americas, and 14% from Asia-Pacific. German investment firm JAB is a controlling shareholder, with a 53% stake.

Financial Insights: Coty

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Coty's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 1.83%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Coty's net margin is impressive, surpassing industry averages. With a net margin of 4.76%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Coty's ROE excels beyond industry benchmarks, reaching 2.02%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.65%, the company showcases effective utilization of assets.

Debt Management: Coty's debt-to-equity ratio is below the industry average. With a ratio of 1.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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

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