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

Coty Inc. (NYSE:COTY) is one of the best undervalued stocks to buy under $10. TD Cowen cut the price target on Coty Inc. (NYSE:COTY) to $3.40 from $3.50 on January 21, maintaining a Hold rating on the stock. It told investors that it adjusted price targets in the beauty space as part of a Q4 preview. TD Cowen added that beauty trends appear solid, and this is expected to drive revenue upside for all companies.

Why Coty Inc. (COTY) Surged On Thursday

In another development, Barclays also cut the price target on Coty Inc. (NYSE:COTY) to $3 from $3.50 on January 16 while maintaining an Underweight rating on the shares. The rating update came as part of the firm adjusting price targets in the consumer staples group in a Q4 earnings preview, with Barclays attributing the recent “enthusiasm” in the stock to “a flight to safety”. It remains concerned about the sector- and company-level fundamentals, adding that potential oil and currency headwinds may materialise in 2026.

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.

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