5 Best Hair Care Stocks To Buy Now

4. Coty Inc. (NYSE:COTY)

Number Of Hedge Fund Holders: 29

Coty Inc. (NYSE:COTY) is a French-American multinational beauty company that develops, manufactures, markets, and distributes professional and retail hair care products, alongside a number of fragrances, cosmetics, and skin care products.

On June 30, Piper Sandler analyst Korinne Wolfmeyer initiated coverage of Coty Inc. (NYSE:COTY) with a Neutral rating and $8 price target. According to the analyst, the company’s “heavy exposure” to prestige fragrance, which represents over 50% of sales, could create tough upcoming comps, and its less-than-favorable exposure to prominent areas like China and travel retail versus peers could share limit upside from “recovery tailwinds.”

Among the hedge funds being tracked by Insider Monkey, New York-based firm Melvin Capital Management is a leading shareholder in Coty Inc. (NYSE:COTY), with 29 million shares worth more than $264 million. Overall, 29 hedge funds reported holding stakes in Coty Inc. (NYSE:COTY) as of Q2 2022.

In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Coty Inc. (NYSE:COTY) was one of them. Here is what the fund said:

“Coty Inc. (NYSE:COTY) is a global beauty company primarily made up of its market leading prestige fragrance business and a mass cosmetic business acquired from P&G that includes brands such as Covergirl. It is a turnaround story catalyzed by the new CEO, Sue Nabi, an experienced beauty expert who previously worked at L’Oreal and successfully executed turnarounds and the relaunch of its Lancome and L’Oreal Paris brands. Early signs are supportive of improving performance in Coty’s cosmetics business. Coty Inc. (NYSE:COTY) should also benefit from an accelerating growth trend in its prestige fragrance business driven by purchases shifting online and the category’s emerging popularity.”