Coty stock touches 52-week low at $5.98 amid market challenges

Coty Inc (NYSE:COTY). shares have faced a significant downturn, touching a 52-week low of $5.98, as the beauty company grapples with market headwinds. According to InvestingPro data, technical indicators suggest the stock is currently in oversold territory, while maintaining impressive gross profit margins of 65.4%. Over the past year, Coty’s stock has seen a substantial decline, with a 1-year change showing a decrease of 47.59%. This latest price level reflects investor concerns over various factors impacting the company’s performance, including shifts in consumer spending habits and competitive pressures within the cosmetics industry. The 52-week low serves as a critical indicator of the stock’s current trajectory and the challenges Coty faces in regaining its footing in a volatile market. InvestingPro analysis suggests the stock is currently undervalued, with analysts expecting net income growth this year. Discover 10+ additional exclusive insights and detailed valuation metrics with an InvestingPro subscription, including the comprehensive Pro Research Report available for COTY and 1,400+ other US stocks.

In other recent news, Coty Inc. has been experiencing a series of financial adjustments, with multiple firms revising their price targets for the company. Canaccord Genuity cut its price target from $10 to $8, citing Coty’s Q2 sales decline of 3.3% and the challenges faced in various markets such as China, Asia travel retail, Australia, and the U.S. consumer beauty market. DA Davidson also reduced its price target from $12.50 to $12.00, highlighting Coty’s decrease in organic sales by 1%.

Meanwhile, Raymond (NSE:RYMD) James reduced its price target for Coty to $9 from the previous $10, despite maintaining an Outperform rating. The adjustment followed Coty’s reported Q2 sales, which fell short of expectations. However, Coty’s cost improvement initiatives have been effective, softening the impact of decreased sales.

On a positive note, Moody’s (NYSE:MCO) Ratings upgraded the Corporate Family Rating (CFR) of Coty Inc. to Ba1 from Ba2, citing the company’s successful efforts in reducing financial leverage and strengthening its balance sheet. The agency expects Coty’s debt-to-EBITDA leverage to improve to a low 3x range by December 2025.

These recent developments show Coty’s commitment to financial stability and growth, despite the challenges in the beauty market. The company is expected to continue its cost reduction efforts and investment in brand-demand building activities, aiming to boost sales momentum and long-term profitability.

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