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Investing.com - RBC Capital maintained its Outperform rating and $12.00 price target on Coty Inc . (NYSE:COTY) ahead of the company’s fiscal fourth-quarter 2025 results. According to InvestingPro data, the stock, currently trading at $4.92, appears undervalued, with analysts’ targets ranging from $4.00 to $12.00.
The investment firm expects Coty to deliver results generally within its guidance range for the quarter, describing the upcoming earnings as a "neutral event" for investors.
RBC noted that investor focus will likely shift to fiscal year 2026 guidance, which the firm believes will align with the company’s commentary from the previous quarter.
The analyst characterized Coty as a "show me story" for most investors during what it termed a "reset year," but highlighted that like-for-like growth should improve throughout the year driven by strong innovation and easier comparisons.
RBC also pointed to fragrance remaining one of the fastest-growing beauty categories, as noted by competitors and retailers, while emphasizing that Coty has "numerous other growth avenues" available to it.
In other recent news, Coty Inc. has been the focus of several key developments. Jefferies has reiterated its buy rating for Coty, maintaining a price target of $6.00 amid rumors of a potential sale. Reports suggest that Coty might be exploring the possibility of divesting its business into separate Prestige and Consumer divisions, although the company has not officially confirmed these plans. Meanwhile, Raymond (NSE:RYMD) James continues to rate Coty as Market Perform, citing anticipated challenges in the company’s fragrance growth and ongoing inventory cleanup efforts. The investment firm expects Coty’s mass market segment to face continued difficulties.
Additionally, Coty has announced changes to its board of directors, with Johannes Huth resigning as a director and Vice Chair. Huth had served on the Audit and Finance Committee since 2022 and was Lead Independent (LON:IOG) Director since June 2023. The company emphasized that Huth’s resignation was not due to any disagreements regarding its operations or policies. These recent developments come as Coty navigates a complex landscape in the beauty industry.
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