The Analyst Verdict: Coty In The Eyes Of 7 Experts

Across the recent three months, 7 analysts have shared their insights on Coty COTY, expressing a variety of opinions spanning from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $9.71, a high estimate of $12.50, and a low estimate of $6.00. Observing a downward trend, the current average is 12.52% lower than the prior average price target of $11.10.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Coty among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines 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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Coty compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

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.

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 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 Milestones: Coty's Journey

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Coty's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.83% as of 30 September, 2024, showcasing a substantial increase in 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 4.76%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Coty's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.02%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Coty's ROA excels beyond industry benchmarks, reaching 0.65%. This signifies efficient management of assets and strong financial health.

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.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.