Coty stock touches 52-week low at $4.61 amid market challenges

Published 16/04/2025, 18:54
Coty stock touches 52-week low at $4.61 amid market challenges

Coty Inc (NYSE:COTY). shares have stumbled to a 52-week low, trading at $4.61, as the beauty giant grapples with a challenging market environment. According to InvestingPro analysis, the company maintains impressive gross profit margins of 65.4%, though its stock shows high volatility with a beta of 1.75. The company, known for its cosmetics and fragrances, has seen its stock price significantly retreat from higher levels over the past year. Investors have been cautious, reflecting a broader concern in the consumer goods sector, which has led to Coty’s stock price descending to its lowest point in a year. This downturn represents a stark 1-year change, with the stock value eroding by 56.49%, signaling a tough period for the company amidst shifting consumer trends and economic headwinds. InvestingPro analysis suggests the stock is currently undervalued, with 14 additional exclusive ProTips available to help investors navigate this volatile period.

In other recent news, Coty Inc. reported a 3.3% decline in sales for the second quarter of fiscal year 2025, with like-for-like sales decreasing by 1%. The company anticipates full-year 2025 like-for-like sales to mirror this performance, projecting a decline of 2% to 1%. In response, Coty plans to enhance its long-term profitability through operational improvements and cost reduction efforts, alongside increased investment in marketing and distribution. Stifel adjusted its price target for Coty to $6.50, maintaining a Hold rating due to macroeconomic uncertainties and reduced consumer spending. Meanwhile, DA Davidson reaffirmed a Buy rating with a $12 price target, citing positive social media trends and strategic asset sales, including the anticipated sale of Coty’s stake in Wella. Jefferies also maintained a Buy rating with an $8 price target, following Coty’s sale of the Skkn brand, aiming to reduce debt and streamline its brand portfolio. Canaccord Genuity lowered its price target to $8 while maintaining a Buy rating, noting challenges in the consumer beauty market but recognizing Coty’s efforts to improve profitability and debt reduction.

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