Coty Price Targets Slashed: RBC to $8, MS to $3.50, Citi to $3.00
RBC Capital cut its price target on Coty to $8 from $10 and maintained an Outperform rating, while Morgan Stanley trimmed its target to $3.50 from $4.25 with an Equal Weight rating. Citi lowered its target to $3.00 from $3.50, and Coty’s Q2 revenue reached $1.68B against a $1.66B consensus.
1. Analyst Price Target Revisions
RBC Capital lowered its Coty price target to $8 from $10 and kept an Outperform rating, citing a transition period under new leadership. Morgan Stanley cut its target to $3.50 from $4.25 with an Equal Weight rating, highlighting below-consensus Q3 EBITDA guidance, while Citi trimmed its target to $3.00 from $3.50, pointing to uncertainty after fiscal 2026 guidance was withdrawn.
2. Q2 Financial Performance
Coty reported second-quarter revenue of $1.68 billion, beating the $1.66 billion consensus on an organic sales beat. The company’s Prestige and Consumer Beauty segments showed resilience, though results fell short of long-term growth targets.
3. Leadership Transition and Outlook
Markus Strobel joined as Executive Chairman and Interim CEO, describing the company’s brands, fragrance innovation, vertical integration and entrepreneurial model as strengths. He acknowledged disappointing financial performance over the past year and emphasized that execution under his interim leadership will be critical to restoring growth.