The Analyst Verdict: Coty In The Eyes Of 8 Experts

Coty COTY underwent analysis by 8 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Coty, presenting an average target of $9.19, a high estimate of $12.50, and a low estimate of $6.00. Highlighting a 13.87% decrease, the current average has fallen from the previous average price target of $10.67.

Analyzing Analyst Ratings: A Detailed Breakdown

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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Coty. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Coty's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Coty analyst ratings.

Delving into Coty's Background

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.

Coty: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Coty displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 1.83%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Coty's net margin excels beyond industry benchmarks, reaching 4.76%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Coty's ROE stands out, surpassing industry averages. With an impressive ROE of 2.02%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Coty's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.65% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Coty's debt-to-equity ratio is below the industry average at 1.04, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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