Zacks Investment Research Downgrades Coty (COTY) to Sell

Coty (NYSE:COTY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

According to Zacks, “Coty, which has underperformed the industry over the past three months, has been facing consistent challenges in its consumer beauty segment. Organic sales at this segment has been hurt by persistent softness in the global mass beauty market. Also, the segment has been consistently witnessing underlying challenges in North America. Unfortunately, management is less hopeful regarding the segment's recovery in the near term. Additionally, the company’s performance is also exposed to the challenges of changing consumer preferences and currency volatility.  Nevertheless, Coty has been gaining from its focus on strategic buyouts. Incidentally, the buyouts of ghd, Younique and Burberry have been fueling Coty’s top-line for a while. Further, the company’s advancements in the e-commerce realm is also applaudable.”

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A number of other research analysts have also recently issued reports on the company. Stifel Nicolaus reiterated a “buy” rating on shares of Coty in a research report on Friday, February 9th. Citigroup lifted their target price on Coty from $21.00 to $23.00 and gave the company a “buy” rating in a research report on Friday, February 9th. BMO Capital Markets lifted their target price on Coty from $22.00 to $24.00 and gave the company a “buy” rating in a research report on Friday, February 9th. Barclays set a $20.00 target price on Coty and gave the company a “hold” rating in a research report on Saturday, February 10th. Finally, JPMorgan Chase lifted their target price on Coty from $15.00 to $17.00 and gave the company an “underweight” rating in a research report on Monday, February 12th. Four analysts have rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $19.71.

Shares of NYSE COTY opened at $17.83 on Monday. The company has a current ratio of 0.93, a quick ratio of 0.66 and a debt-to-equity ratio of 0.76. Coty has a 52 week low of $14.24 and a 52 week high of $21.68. The firm has a market capitalization of $13,242.60, a P/E ratio of 28.30, a P/E/G ratio of 1.90 and a beta of 0.37.

Coty (NYSE:COTY) last issued its quarterly earnings results on Thursday, February 8th. The company reported $0.32 EPS for the quarter, topping the Zacks’ consensus estimate of $0.24 by $0.08. Coty had a positive return on equity of 4.45% and a negative net margin of 4.15%. The company had revenue of $2.64 billion for the quarter, compared to analysts’ expectations of $2.48 billion. During the same quarter last year, the business earned $0.30 earnings per share. Coty’s revenue was up 14.8% on a year-over-year basis. equities analysts anticipate that Coty will post 0.72 EPS for the current year.

In other news, major shareholder Cosmetics B.V. Jab purchased 1,550,000 shares of the business’s stock in a transaction dated Monday, February 12th. The shares were purchased at an average cost of $20.27 per share, with a total value of $31,418,500.00. Following the completion of the purchase, the insider now owns 287,558,041 shares of the company’s stock, valued at approximately $5,828,801,491.07. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 1.00% of the company’s stock.

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Coty Company Profile

Coty Inc, together with its subsidiaries, manufactures, markets, sells, and distributes beauty products worldwide. It operates in three segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care products, and mass fragrances primarily through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, and traditional food and drug retailers, as well as own branded e-commerce and direct to consumer Websites.

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