In a report released today, Joe Lachky from Wells Fargo reiterated a Hold rating on Coty Inc (NYSE: COTY), with a price target of $11. The company’s shares opened today at $12.28, close to its 52-week low of $10.73.
“We applaud the additional transparency from mgmt., but continue to see a number of challenges ahead. FQ1 will already be pressured by supply chain headwinds (which were disclosed on the FQ4 call a few weeks ago), but will also likely be impacted by Hurricane Florence, which could close COTY’s largest U.S. manufacturing/distribution facility in Sanford, NC for a number of days. This likely will put more pressure on an already back-half weighted outlook, where execution risk will be heightened given additional system transitions in FQ3/FQ4. Looking forward, we note a restriction will lift on the 2-yr anniversary of the PG Beauty deal (10/1) allowing more flexibility for COTY’s largest shareholder JAB to buy shares. We believe this could help support the share price, but otherwise we see few near-term catalysts to drive valuation higher.”
The word on The Street in general, suggests a Hold analyst consensus rating for Coty Inc with a $14.14 average price target.
The company has a one-year high of $21.68 and a one-year low of $10.73. Currently, Coty Inc has an average volume of 6.71M.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of COTY in relation to earlier this year.
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Coty, Inc. engages in the manufacture, market, sale, and distribution of branded beauty products. It operates through the following segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care, and mass fragrances.