Royal Bank Of Canada Reiterates “Outperform” Rating for Coty (NYSE:COTY)

Coty (NYSE:COTY)‘s stock had its “outperform” rating reissued by research analysts at Royal Bank Of Canada in a research note issued on Tuesday,Benzinga reports. They presently have a $10.00 price objective on the stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 192.40% from the company’s previous close.

Several other equities research analysts have also commented on the stock. Canaccord Genuity Group set a $3.50 price target on shares of Coty in a research note on Monday. Evercore ISI lowered Coty from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 23rd. Rothschild & Co Redburn assumed coverage on Coty in a research note on Tuesday, November 25th. They set a “neutral” rating and a $3.60 target price on the stock. Weiss Ratings reiterated a “sell (d)” rating on shares of Coty in a research report on Wednesday, January 21st. Finally, Citigroup decreased their price target on Coty from $4.25 to $3.50 and set a “neutral” rating for the company in a research note on Wednesday, December 17th. Three research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $5.20.

Coty Stock Performance

Shares of COTY opened at $3.42 on Tuesday. The firm has a fifty day moving average of $3.21 and a 200-day moving average of $3.85. The company has a market cap of $2.99 billion, a price-to-earnings ratio of -7.43, a price-to-earnings-growth ratio of 0.22 and a beta of 0.95. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.54 and a current ratio of 0.85. Coty has a 1 year low of $2.94 and a 1 year high of $7.10.

Coty (NYSE:COTY) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.03). The firm had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.58 billion. Coty had a negative net margin of 6.60% and a positive return on equity of 4.74%. The company’s revenue for the quarter was down 5.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.15 earnings per share. As a group, equities analysts anticipate that Coty will post 0.39 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. GAM Holding AG lifted its holdings in shares of Coty by 109.7% during the third quarter. GAM Holding AG now owns 650,000 shares of the company’s stock valued at $2,626,000 after purchasing an additional 340,000 shares during the last quarter. Edmond DE Rothschild Holding S.A. increased its stake in Coty by 10.9% in the 2nd quarter. Edmond DE Rothschild Holding S.A. now owns 3,994,553 shares of the company’s stock worth $18,574,000 after purchasing an additional 392,720 shares in the last quarter. Norges Bank acquired a new stake in Coty during the 2nd quarter worth about $52,449,000. Assenagon Asset Management S.A. lifted its stake in Coty by 6,340.5% during the third quarter. Assenagon Asset Management S.A. now owns 2,883,926 shares of the company’s stock valued at $11,651,000 after buying an additional 2,839,148 shares in the last quarter. Finally, Thrivent Financial for Lutherans lifted its stake in Coty by 9.1% during the third quarter. Thrivent Financial for Lutherans now owns 8,753,712 shares of the company’s stock valued at $35,365,000 after buying an additional 727,404 shares in the last quarter. 42.36% of the stock is owned by institutional investors and hedge funds.

Coty News Summary

Here are the key news stories impacting Coty this week:

• Positive Sentiment: OpenAI partnership — Coty announced a companywide rollout of ChatGPT Enterprise and a strategic collaboration to expand AI capabilities; management frames this as a productivity, customer‑engagement and responsible‑AI initiative that could lower costs and accelerate digital marketing/personalization efforts. Coty Enters Strategic Collaboration With OpenAI to Strengthen Responsible AI Adoption Across the Organization
• Positive Sentiment: Big bullish options flow — traders bought roughly 10,652 call options (about a 430% jump vs. typical call volume), signaling speculative bullish sentiment or hedging by sophisticated investors that may amplify short‑term upside.
• Positive Sentiment: Analyst endorsement — Royal Bank of Canada reaffirmed an “outperform” rating with a $10 price target, implying substantial upside from current levels and potentially supporting investor confidence. Benzinga
• Neutral Sentiment: Earnings previews and outlook pieces — multiple outlets preview Coty’s upcoming results and what to watch (revenue mix, margin recovery, brand performance). These items highlight factors that will determine the next directional move but don’t yet change the outlook. Earnings Outlook For Coty
• Neutral Sentiment: Valuation discussion — recent analysis assesses mixed share‑price performance and valuation metrics (low share price vs. long runway if execution improves); useful background but inconclusive for near‑term moves. Assessing Coty’s (COTY) Valuation After Mixed Share Price Performance
• Neutral Sentiment: Marketing leadership update — Coty elevated Asmita Singh to Marketing Director for Marc Jacobs & Kylie Cosmetics, a routine exec move that could help brand execution but is incremental. Coty elevates Asmita Singh as Marketing Director, Marc Jacobs & Kylie Cosmetics (Dual Axe)
• Negative Sentiment: Industry margin pressure flagged — consumer‑staples/beauty earnings previews warn of profit pressure, margin strain and price‑sensitive consumers; these macro/operational risks could limit upside if Coty’s margin recovery stalls. Consumer Staples Earnings to Watch This Week: EL, NWL, HSY, COTY, PM

About Coty

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty’s portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company’s product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.