Where is Coty Inc. (COTY) Headed According to Analysts?

Coty Inc. (NYSE:COTY) is one of the best affordable stocks under $5 to buy for the next 3 years. On November 28, Morgan Stanley analyst Dara Mohsenian reiterated a Hold rating on Coty Inc. (NYSE:COTY), setting a price target of $4.25.

Coty Inc. (NYSE:COTY) was also initiated with a Neutral rating by Rothschild & Co Redburn on November 25, who assigned the stock a $3.60 price target and stated that while it sees some upside to the company’s shares, it thinks that Coty Inc.’s (NYSE:COTY) risk/reward balance “is not compelling enough.” The firm added that the company is experiencing limited clarity on its strategic review, along with increased uncertainty on its category growth.

The rating updates followed Coty Inc.’s (NYSE:COTY) fiscal Q1 2026 results on November 5, with net revenue dropping 6% on a reported basis to $1.577 billion, including a 2% benefit from FX, and dropping 8% on an LFL basis.

In addition, adjusted EPS of $0.12 dropped from adjusted EPS of $0.15 in the prior year period, and included a negative impact of $0.03 from the equity swap mark-to-market. Management, however, stated that the results for the quarter were largely in line with expectations and expressed confidence in Coty Inc. (NYSE:COTY) returning to profitable sales growth in H2 2026 and beyond, supported by the company’s strengthening execution, especially in the US market, along with market-leading fragrance innovations and strategic initiatives.

Coty, Inc. (NYSE:COTY) is a beauty company that operates a portfolio of brands in color cosmetics, fragrance, and skin and body care. Its Prestige segment operates an array of luxury brands, including Gucci, Marc Jacobs, Miu Miu, Tiffany & Co., Kylie Cosmetics by Kylie Jenner, Hugo Boss, Burberry, Chloe, Calvin Klein, SKKN BY KIM, and more. Coty, Inc.’s (NYSE:COTY) mass beauty products are primarily sold through supermarkets, hypermarkets, drugstores, department stores, e-commerce retailers, and other channels.

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