Successful Sale: Coty has completed the sale of its remaining 25.8% stake in Wella, receiving $750 million in cash, marking the successful execution of its multi-year monetization program and aligning with its goal to fully divest Wella by the end of CY25.
Reduced Financial Leverage: This transaction is expected to reduce Coty's financial net leverage to approximately 3x, bringing it closer to its long-term target of 2x, thereby enhancing the company's financial stability.
Cash Flow Utilization: Coty plans to use the majority of the cash proceeds from the Wella transaction to pay down short-term and long-term debt, which is anticipated to improve the company's financial condition and enhance its credit rating.
Strategic Partnership: The strategic partnership with KKR has proven to be value-accretive, as Coty has progressively monetized its stake in Wella, strengthening its financial foundations and demonstrating its commitment to realizing value from non-core assets.
COTY
$3.25+Infinity%1D
Analyst Views on COTY
Wall Street analysts forecast COTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COTY is 4.85 USD with a low forecast of 3.50 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast COTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COTY is 4.85 USD with a low forecast of 3.50 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
11 Hold
2 Sell
Hold
Current: 3.260
Low
3.50
Averages
4.85
High
10.00
Current: 3.260
Low
3.50
Averages
4.85
High
10.00
Citi
Neutral
downgrade
2025-12-17
New
Reason
Citi
Price Target
2025-12-17
New
downgrade
Neutral
Reason
Citi lowered the firm's price target on Coty to $3.50 from $4.25 and keeps a Neutral rating on the shares. The firm adjusted targets in the beverages, household and personal care sector as part of its 2026 outlook. Citi is shifting from a bullish stance on the non-alcoholic beverage space throughout 2025 toward favoring the household and personal care names. It sees improving fundamentals for the group due to the cycling of inventory destocking and easier consumption compares.
TD Cowen
Hold
downgrade
$4
2025-12-12
Reason
TD Cowen
Price Target
$4
2025-12-12
downgrade
Hold
Reason
TD Cowen lowered the firm's price target on Coty to $3.75 from $4 and keeps a Hold rating on the shares. The firm updated its model to reflect new revneu growth estimates while listing several risk factors including post-holiday destocking, promos, mass cosmetics pressure, and slower US recovery.
Rothschild & Co Redburn
Neutral
initiated
$3.60
2025-11-25
Reason
Rothschild & Co Redburn
Price Target
$3.60
2025-11-25
initiated
Neutral
Reason
Rothschild & Co Redburn initiated coverage of Coty with a Neutral rating and $3.60 price target. The firm sees some upside to the shares, but feels Coty's risk/reward balance "is not compelling enough." The company faces heightened uncertainty on its category growth and limited clarity on its strategic review, the analyst tells investors in a research note.
TD Cowen
Oliver Chen
Hold
maintain
$4
2025-10-20
Reason
TD Cowen
Oliver Chen
Price Target
$4
2025-10-20
maintain
Hold
Reason
TD Cowen analyst Oliver Chen sees "increased urgency" for Coty (COTY) to develop proprietary capabilities and drive innovation after Kering (PPRUY) agreed to sell its beauty unit to L'Oreal (LRLCY). The Gucci license and others will be going to L'Oreal, TD points out. It believes Coty "needs to build and emphasize proprietary formulations, brand-building, and verticalized capabilities that consumers cannot get anywhere else." TD keeps a Hold rating on Coty with a $4 price target. The stock in morning trading is down 2% to $4.24.
About COTY
Coty Inc. is a beauty company with a portfolio of brands across fragrance, color cosmetics, and skin and body care. The Company has a diverse portfolio of brands, which includes both owned and licensed. Its brand portfolio is classified into two segments: Consumer beauty and Prestige. The consumer beauty brands include Adidas, Beckham, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Mexx, LeGer by Lena Gercke, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, and Vera Wang. Its prestige brands include Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, and Tiffany & Co. Its mass beauty brands are primarily sold through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, traditional food and drug retailers, and dedicated e-commerce retailers. It markets, sells and distributes its products in over 120 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
