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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.

While we acknowledge the potential of COTY to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

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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  • 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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