Coty falls after weak earnings forecast, withheld annual outlook
COTY•Analyst reaction and visibility concerns
- RBC downgraded COTY to "sector perform" from "outperform", saying the path to sustainable growth is increasingly unclear due to the Gucci license termination, ongoing turnaround efforts, cost-cutting needs, and limited earnings visibility.
- The brokerage said the announcement of a new CFO also brings further uncertainty.
- Eighteen analysts rate the stock "hold" on average; the median price target is $2.8, according to LSEG data.
- Up to the last close, the stock had fallen 1.6% year to date.
Shares fall after weak quarterly earnings outlook
- Shares of CoverGirl owner Coty COTY.N fell about 8% to $2.775.
- On Wednesday, the company forecast current-quarter earnings below expectations and withheld its annual outlook, calling fiscal 2027 a "transition year" as it pushes ahead with a business overhaul.
- Coty forecast first-quarter adjusted earnings per share of 11 cents to 13 cents, below analysts' estimates of 14 cents, according to data compiled by LSEG.
