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Analysts See Uncertainty Around Coty Inc. (COTY)

Coty Inc. (NYSE:COTY) is one of the 10 Best US Penny Stocks to Buy. On December 23, Banco Santander downgraded its rating on Coty Inc. (NYSE:COTY) from Outperform to Neutral and set a price target of $3.50. The firm noted that the company’s “transition phase” may take longer due to the CEO change.

On December 22, Evercore ISI also downgraded Coty Inc. (NYSE:COTY) from Outperform to In Line and set a price target of $7. This update comes after the departure of the company’s CEO, Sue Nabi. Coty Inc. (NYSE:COTY) announced that Markus Strobel, a Procter & Gamble veteran, has been appointed Executive Chairman of the Board and Interim CEO. Evercore ISI sees this moment as a “pivotal juncture” for the company at a time when it is conducting a strategic review of its Consumer division.

According to Evercore ISI’s analysis, the Consumer division accounts for about 15% of Coty Inc.’s (NYSE:COTY) profits but it also creates “nearly all of the operational challenges and bearish sentiment” for the company. The research firm noted that there is limited “visibility on timing and catalysts for a potential value unlock.” Evercore ISI sees the stock as undervalued but it noted that it is expected to “remain undervalued” as near-term outperformance is unlikely.

Previously, on December 12, TD Cowen lowered its price target on Coty Inc. (NYSE:COTY) from $4.00 to $3.75 and kept its Hold rating. The firm pointed to risks such as post-holiday inventory reductions, promotional pressures, a challenging environment in mass cosmetics, and a slower-than-expected recovery in the US market.

Coty Inc. (NYSE:COTY) is an American multinational beauty company with a portfolio of iconic brands across fragrance, color cosmetics, and skin and body care.

While we acknowledge the potential of COTY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COTY and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best New Penny Stocks to Invest In and 13 Best Gold Mining Companies to Invest In Now.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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