Coty Inc. (COTY) Price Target Cut on Disappointing Quarterly Results and Guidance

Coty Inc. (NYSE:COTY) is one of Goldman Sachs’ top penny stock picks. On February 9, Canaccord Genuity lowered its price target for Coty Inc. (NYSE:COTY) to $2.50 from $3.50, while maintaining a Hold rating.

The price target cut came on the heels of Coty Inc. delivering a 1% year-over-year increase in second-quarter fiscal 2026 sales to $1.67 billion, which topped analyst estimates. The company plunged to a net loss of $126.9 million, compared with net income of $20.4 million in the same quarter last year. On the other hand, adjusted EPS came in at $0.14, an improvement from $0.11 a year ago.

Meanwhile, Coty issued disappointing guidance, signaling a potential sequential decline despite year-over-year comparisons. The company expects like-for-like sales to decline by mid-single digits due to weakening Consumer Beauty sales trends, and has also withdrawn fiscal year 2026 adjusted EBITDA and free cash flow guidance.

“Our financial performance over the past year and a half has been disappointing, and our current share price reflects that reality. […].In parallel, we are continuing our portfolio review to identify opportunities to unlock shareholder value in both the near and long term, complemented by other value-driving initiatives, such as the recent divestiture of our remaining stake in Wella at the end of CY25, which delivers on our commitment.

Coty Inc. (NYSE:COTY) is one of the world’s largest beauty companies, specializing in the development, manufacturing, marketing, and distribution of fragrances, color cosmetics, and skin and body care products. Founded in 1904 in Paris, the company has evolved into a global industry leader with a portfolio of over 40 brands sold in more than 130 countries and territories.