Coty (NYSE:COTY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Coty’s shares have gained in the past three months. This is largely attributable to robust growth in the Luxury segment. The unit is gaining from solid brand performances, innovations and strong consumer demand. The inclusion of Burberry also drove the Luxury unit’s performance during second-quarter fiscal 2019. Moreover, the company is on track with saving efforts and boosting e-commerce platform. However, we note that Coty is struggling with persistent weakness in the Consumer Beauty unit. This along with supply-chain hurdles marred second-quarter fiscal 2019 results. Revenues were hit by supply-chain woes in all units. We note that the Consumer Beauty unit has long been pressurized by supply-chain disruptions and persistent softness in mass beauty categories. While management is making efforts to revive this unit and mitigate supply-chain woes, we are yet to see if these can be fully countered in the near term.”
A number of other equities research analysts have also recently issued reports on COTY. Morgan Stanley cut Coty from an “overweight” rating to a “hold” rating and reduced their price objective for the stock from $14.50 to $10.00 in a report on Wednesday, November 7th. Jefferies Financial Group set a $10.00 price target on Coty and gave the company a “hold” rating in a research note on Wednesday, November 7th. Wells Fargo & Co cut their price target on Coty from $11.00 to $9.00 and set a “hold” rating for the company in a research note on Wednesday, November 7th. Royal Bank of Canada cut their price target on Coty from $23.00 to $18.00 and set an “outperform” rating for the company in a research note on Thursday, November 8th. Finally, Citigroup set a $11.00 price target on Coty and gave the company a “buy” rating in a research note on Friday, November 9th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the stock. Coty currently has a consensus rating of “Hold” and an average price target of $12.68.
Coty stock traded down $0.01 during midday trading on Wednesday, reaching $11.02. 86,739 shares of the company’s stock were exchanged, compared to its average volume of 12,350,146. Coty has a 52 week low of $5.91 and a 52 week high of $19.80. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.66 and a current ratio of 0.96. The stock has a market capitalization of $8.28 billion, a P/E ratio of 15.96, a PEG ratio of 2.62 and a beta of 0.81.
Coty (NYSE:COTY) last posted its quarterly earnings results on Friday, February 8th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.02. Coty had a positive return on equity of 5.38% and a negative net margin of 13.58%. The business had revenue of $2.51 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same quarter last year, the company posted $0.32 earnings per share. Coty’s quarterly revenue was down 4.8% on a year-over-year basis. Research analysts forecast that Coty will post 0.63 earnings per share for the current year.
Institutional investors and hedge funds have recently made changes to their positions in the business. MSD Partners L.P. increased its holdings in shares of Coty by 15.7% during the fourth quarter. MSD Partners L.P. now owns 6,750,297 shares of the company’s stock worth $44,282,000 after buying an additional 913,572 shares in the last quarter. Norges Bank acquired a new position in shares of Coty during the fourth quarter worth $36,720,000. Griffin Asset Management Inc. acquired a new position in shares of Coty during the fourth quarter worth $90,000. FMR LLC increased its holdings in shares of Coty by 7.9% during the fourth quarter. FMR LLC now owns 63,208,973 shares of the company’s stock worth $414,651,000 after buying an additional 4,636,912 shares in the last quarter. Finally, Kentucky Retirement Systems acquired a new position in shares of Coty during the fourth quarter worth $129,000. Institutional investors and hedge funds own 63.35% of the company’s stock.
Coty Company Profile
Coty Inc, together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates in three segments: Luxury, Consumer Beauty, and Professional Beauty. The Luxury segment offers prestige fragrances, and skincare and cosmetics products through various retailers, including perfumeries, department stores, and duty-free shops under the Alexander McQueen, Balenciaga, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Lacoste, Lancaster, Marc Jacobs, Miu Miu, philosophy, Stella McCartney, and Tiffany & Co brands.
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