Morgan Stanley and Canaccord Decrease COTY Worth Targets After Q2 Outcomes

Coty Inc. (NYSE:COTY) is without doubt one of the 13 Finest American Penny Shares to Make investments In. On February 9, Morgan Stanley lowered its worth goal on Coty Inc. (NYSE:COTY) from $4.25 to $3.50 and stored an Equal Weight score on the inventory.

This replace got here after the corporate reported Q2 outcomes, which Morgan Stanley famous have been barely under plan. The corporate’s Q3 EBITDA steerage was nicely under consensus estimates. Morgan Stanley identified that “the important thing detrimental” was the withdrawal of the fiscal 2026 steerage. The analysis agency pointed to an absence of visibility. Morgan Stanley believes that execution below the brand new interim CEO will now be necessary for Coty Inc. (NYSE:COTY) going ahead.

On February 9, Canaccord Genuity additionally lowered its worth goal on Coty Inc. (NYSE:COTY) from $3.50 to $2.50 whereas holding its Maintain score on the inventory. This discount in worth goal follows the corporate’s combined Q2 outcomes.

Canaccord Genuity pointed to uncertainty round Coty Inc.’s (NYSE:COTY) management transition and continued detrimental gross sales development as key causes behind its lower cost goal.

Coty Inc. (NYSE:COTY) is an American multinational magnificence firm with a portfolio of iconic manufacturers throughout perfume, shade cosmetics, and pores and skin and physique care.

Whereas we acknowledge the potential of COTY as an funding, we consider sure AI shares supply higher upside potential and carry much less draw back danger. In the event you’re in search of a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

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