Coty, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on the stock and has a $4.25 price target.
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Dara Mohsenian has given his Hold rating due to a combination of factors impacting Coty’s financial outlook. The company’s first-quarter performance was in line with expectations in terms of adjusted EBITDA, but it faced challenges with a decline in organic sales growth and gross margin pressures. Despite some cost-saving measures and disciplined spending that helped stabilize earnings, the ongoing issues with retailer destocking and uneven execution in the Consumer Beauty segment have created uncertainty about a recovery in the second half of the year.
Mohsenian maintains a price target of $4.25, reflecting a cautious stance given the limited visibility and growth prospects compared to peers. The analyst has slightly lowered future EBITDA estimates due to modest underperformance in sales and continued pressure in the first half, although these are partially offset by stronger cost controls and tariff mitigation efforts. Overall, the Hold rating suggests a balanced view, acknowledging both the challenges and the potential for gradual improvement in the company’s financial performance.
In another report released on November 7, Jefferies also maintained a Hold rating on the stock with a $4.00 price target.