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Coty Inc (NYSE:COTY). shares have reached a 52-week low, dipping to $5.33, marking a stark contrast from its 52-week high of $11.80, as the beauty company grapples with a challenging market environment. According to InvestingPro analysis, the stock appears undervalued at current levels. This latest price level reflects a significant downturn from previous periods, with the stock declining 36.73% over the past six months. Despite market challenges, Coty maintains impressive gross profit margins of 65.4%. Investors are closely monitoring Coty’s performance, as the company navigates through industry headwinds and strategizes to regain its footing in the competitive cosmetics and personal care market. The 52-week low serves as a critical indicator of the pressures Coty faces, and the market’s response to its efforts to revitalize growth and investor confidence. For deeper insights into Coty’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Coty Inc. has been the subject of several analyst reports and strategic business decisions. DA Davidson reaffirmed its Buy rating on Coty with a price target of $12, citing strong social media performance for Coty’s brands and the company’s strategic moves to divest stakes in SKKN by Kim and possibly Wella in the future. Jefferies also maintained a Buy rating with an $8 price target, highlighting Coty’s sale of the SKKN brand to Kim Kardashian’s company, Skims, as a strategic move to reduce debt. Meanwhile, Canaccord Genuity adjusted its price target to $8, following Coty’s second-quarter fiscal year 2025 results, which showed a sales decline of 3.3% and like-for-like sales down by 1%.
Coty’s management noted challenges in the beauty market, particularly in regions like China and the U.S., and expects full-year 2025 sales to decline slightly. Despite these challenges, Canaccord Genuity remains optimistic about Coty’s long-term profitability through operational improvements and strategic investments. Raymond (NSE:RYMD) James, while maintaining an Outperform rating, lowered its price target to $9 due to Coty’s underwhelming second-quarter sales and a revised outlook for fiscal year 2025. Coty’s Prestige Fragrance segment, however, continues to perform well, with high single-digit growth.
Coty’s efforts in cost improvements have helped soften the impact of decreased sales, leading to better-than-expected gross and operating margins. The company reported an EPS of $0.22 for the fiscal second quarter, aligning with Raymond James’ estimates. Analysts note that Coty’s relatively low exposure to the challenging Chinese market, accounting for only 3% of its sales, may provide some resilience. The company’s strategic focus on brand-demand building and potential product launches in fiscal year 2026 are anticipated to drive future growth.
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