Coty Inc (NYSE:COTY). shares have stumbled to a 52-week low, trading at $6.86, as the beauty giant grapples with a challenging market environment. According to InvestingPro data, the company maintains impressive gross profit margins of 64.93% despite market pressures, while analysts have set price targets ranging from $7 to $15. 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 been hit by changing consumer habits and economic headwinds. The 52-week low marks a stark contrast to the stock’s performance over the past year, with Coty Inc. experiencing a substantial 1-year change, declining by -44.69%. This downturn highlights the hurdles the company faces as it strives to adapt and revitalize its brand portfolio in a rapidly evolving marketplace. Despite the challenges, InvestingPro analysis indicates the stock is currently undervalued, with revenue growing at 5.9% and multiple additional insights available in the comprehensive Pro Research Report.
In other recent news, Coty Inc. reported Q1 earnings and revenue that slightly missed analyst expectations, with adjusted earnings per share of $0.15 and a 2% year-over-year revenue increase to $1.67 billion. Coty’s Prestige segment saw a 5% increase in revenue, while the Consumer Beauty segment experienced a 3% decline. The company revised its full-year earnings guidance for fiscal 2025, predicting earnings per share to fall in the range of $0.54 to $0.57, down from the previous forecast of $0.56 to $0.60.
On the analyst front, Goldman Sachs initiated coverage on Coty with a Neutral rating, while DA Davidson revised its price target for Coty’s shares to $12.50 from the previous $14.50, maintaining a Buy rating. Barclays (LON:BARC) downgraded Coty’s stock rating from Equal Weight to Underweight, citing concerns about the company’s strategic direction and its ability to meet financial objectives.
In other company news, Coty’s annual shareholders meeting resulted in the election of all twelve director nominees and approval of an advisory resolution on the compensation of Coty’s named executive officers. Despite the lowered earnings and revenue, Coty maintains its free cash flow growth forecast in the low to mid $400 million range for fiscal 2025 and continues to aim to reduce leverage to below 3x by the end of 2024. These are the recent developments for Coty Inc.
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