10 Best Mid Cap FMCG Stocks to Buy Now

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7. Coty Inc. (NYSE:COTY)

Market Cap as of July 21: $4.37 billion

Number of Hedge Fund Holders: 29

Coty Inc. (NYSE:COTY) is one of the Best Mid Cap FMCG Stocks to Buy Now. Analyst Filippo Falorni of Citi reiterated a “Buy” rating on the company’s stock, while retaining the price objective of $6.50. The analyst’s rating is backed by a combination of factors demonstrating a favourable outlook for the company’s stock. One of the critical reasons is the potential for M&As, with Coty Inc. (NYSE:COTY) reportedly being in discussions to sell parts of its Prestige and Consumer Beauty businesses. This sale can unlock significant value, given the company’s progress in reducing its debt and the possibility of monetizing the stake in Wella.

Coty Inc. (NYSE:COTY)’s strong fundamentals, along with its multi-pronged plan for accelerating innovation, distribution, and efficiencies, provide confidence. Coty Inc. (NYSE:COTY) is focused on entering FY 2026 with alignment between sell-in and sell-out in order to create a healthy baseline for growth. Coty Inc. (NYSE:COTY) stated that CY 2026 debt maturities of ~$1.1 billion can be addressed via either refinancing, seasonal FCF at CYE and/or revolver, with available liquidity at Q3 2025 end coming at $1.8 billion.

Meridian Funds, managed by ArrowMark Partners, released its Q4 2024 investor letter. Here is what the fund said:

“Coty Inc. (NYSE:COTY) is a global beauty company with a growing portfolio of prestige and consumer brands. We hold Coty for its transformation potential through strategic investments in brand development and expansion within high-growth beauty markets. Performance this quarter was impacted by broader retail headwinds, as distributors in the U.S., Australia, and Asian retail channels maintained cautious inventory positions. Weak sales in China further pressured results. Despite these challenges, management implemented cost-saving measures to protect margins while maintaining strategic growth initiatives. We anticipate sales momentum to reaccelerate, supported by holiday season performance and continued expansion of the prestige portfolio.”

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