Shares of beauty products provider Coty (NYSE:COTY) are on the rise today after it boosted its financial outlook for Fiscal Year 2024. This can be attributed to robust demand, particularly in Prestige fragrances.
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While momentum in beauty demand remains robust across Coty’s key markets and categories, its recent launch of the Burberry Goddess fragrance is also tracking well. This momentum has led to the company’s increased volumes and sales.
Consequently, core LFL (Like-For-Like) sales growth in H1 2024 is anticipated to be in the range of 10% to 12% (versus the prior outlook of between 8% and 10%). For the full fiscal year, core LFL sales growth is expected to be between 8% and 10% (compared to the earlier outlook of 6% to 8%).
Furthermore, the company is anticipating a modest gross margin expansion for the full fiscal year and a 10 to 30 basis point adjusted EBITDA margin expansion. This points to an adjusted EBITDA range of $1,075 million to $1,085 million, compared to the prior outlook of between $1,065 million and $1,075 million.
Impressively, in the medium term, Coty expects to deliver an EPS CAGR (Compound Annual Growth Rate) in the mid-20% range due to margin expansion, deleveraging efforts, and a share count reduction toward 800 million.
What is the Stock Price Forecast for Coty?
Overall, the Street has a consensus price target of $12.92 on Coty, alongside a Moderate Buy consensus rating. Shares of the company have gained nearly 47% over the past year.
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