Coty Inc. Stock 12‑Month Price Target Raised to $2.64, Implies 11% Downside

Coty Inc. secured $400M from Kering for an early transition of the Gucci Beauty license, a year ahead of schedule. The deal includes inventory proceeds and aims to support debt reduction, core brand investment, and organizational optimization. Coty also announced leadership changes and a strategic review of its consumer beauty business.

Coty Inc. reported fiscal Q4 net revenue of $1.27B, up 1.3% and beating estimates, but like-for-like revenue fell 1%. Adjusted loss per share narrowed to 2 cents, missing expectations. The company withheld annual forecasts, citing a 'transition year' due to the Gucci exit. Shares dropped 7% in extended trading. Coty highlighted cost savings and improved free cash flow.

Coty (COTY) reported a wider loss and lowered its near-term profit outlook, citing margin pressures and SKU rationalization. The stock has seen short-term declines but remains up 22.87% over 90 days. Analysts suggest a fair value of $3.17, citing potential margin improvements and earnings growth by late 2025, despite risks from high debt and reliance on licensed brands.

Coty (COTY) reported Q2 revenue of $1.27B, beating estimates but missing on adjusted EPS (-$0.02 vs -$0.01). Management cited market share gains and inventory adjustments as key focus areas. Analysts questioned SKU rationalization, promotional strategies, and cost mitigation. COTY stock is down 12% since earnings.

Coty (COTY) shares fell 8.5% after reporting Q4 revenue of $1.27B, beating estimates, but with a wider adjusted loss and weaker guidance. The company expects Q1 adjusted earnings of $0.11-$0.13 per share, below consensus, and a low-to-mid-single-digit revenue decline. Management withheld fiscal 2027 guidance, citing a transition year. Coty's fragrance brands showed resilience, while portfolio simplification and potential divestitures could strengthen its balance sheet.

Coty Inc. reported full-year sales of $5.81 billion and a net loss of $604.8 million, while confirming its exit from the Gucci Beauty license. The company appointed Soraya Benchikh as incoming CFO, aiming to address profitability pressures. Analysts project varying revenue and earnings forecasts for 2029, with optimistic and pessimistic outlooks differing significantly.