Canaccord Cuts Coty Price Target to $2.50 After Q2 $1.67B Sales, Net Loss
Canaccord Genuity cut Coty’s price target to $2.50 from $3.50 after reporting Q2 fiscal 2026 sales of $1.67 billion, a 1% year-over-year increase. The company swung to a net loss of $126.9 million, withdrew full-year EBITDA and free cash flow guidance, and expects mid-single-digit like-for-like sales declines.
1. Q2 Fiscal 2026 Performance
In Q2 fiscal 2026, Coty reported sales of $1.67 billion, a 1% increase year-over-year. Adjusted EPS rose to $0.14 from $0.11, but the company incurred a net loss of $126.9 million versus a $20.4 million profit in the prior-year quarter.
2. Analyst Price Target Revision
On February 9, Canaccord Genuity lowered its price target on Coty from $3.50 to $2.50 while retaining a Hold rating. The adjustment reflects concerns over profitability and future cash flow given the swing to a net loss.
3. Guidance Withdrawal and Outlook
Coty withdrew its full-year adjusted EBITDA and free cash flow guidance and forecast mid-single-digit like-for-like sales declines driven by weakening Consumer Beauty trends. Management is reviewing its portfolio and pursuing divestitures to unlock shareholder value.