Coty Inc (NYSE:COTY). shares have stumbled to a 52-week low, trading at $6.71, as the beauty giant grapples with a challenging market environment. The company maintains impressive gross profit margins of 65%, though InvestingPro data shows significant stock volatility with analyst price targets ranging from $7 to $15. This latest price point reflects a significant downturn from previous periods, with the stock experiencing a steep 1-year change, plummeting by -44.32%. According to InvestingPro's Fair Value analysis, Coty appears undervalued at current levels. Investors are closely monitoring Coty's performance, as the company navigates through the pressures of shifting consumer trends and increased competition, which have collectively contributed to the stock's downward trajectory over the past year. The current 52-week low serves as a critical juncture for Coty, as market watchers and stakeholders alike assess the company's strategic moves to revitalize its brand and financial health in the face of persistent headwinds. With earnings scheduled for February 5th, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis of Coty's prospects.
In other recent news, Coty Inc. reported Q1 earnings and revenue that slightly missed analyst expectations, posting adjusted earnings per share of $0.15 and a 2% year-over-year revenue increase to $1.67 billion. The company's Prestige segment saw a 5% increase in revenue, while the Consumer Beauty segment experienced a 3% decline. Coty has 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.
In response to these developments, Goldman Sachs initiated coverage on Coty with a Neutral rating, while DA Davidson revised its price target to $12.50, maintaining a Buy rating. On the other hand, 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. in the financial landscape.
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