Coty Inc. (COTY) PT Lowered to $13 at Piper Sandler

Piper Sandler analyst Korinne Wolfmeyer lowered the price target on Coty Inc. (NYSE: COTY) to $13.00 (from $15.00) while maintaining a Overweight rating.

The analyst commented: "COTY remains a favored idea, given a valuation that’s been overly pressured in the past few months, lower China exposure than several peers and outsized exposure to outperforming fragrance, and forward expectations that seem achievable. Into the print, we don’t see any reason for numbers to come in light of current expectations, and while some investors have been more focused on the scanner data, sales in non-tracked channels should outpace. Additionally, we expect investors to be focused on the outlook for FY’25, in particular the 1H acceleration that management’s been pointing to. Right now, the stock looks to be pricing in some skepticism here, but with a comp dynamic putting heavier pressure on FQ4 and no overly optimistic growth drivers assumed for 1H, management's targets look achievable. We do note that while cost inflation is easing, management still expects some moderate inflation in FY’25 but not as much pricing, so any downside risk here could come from lighter than hoped margins. Despite this, we view FQ4 as a confidence-building event and would be buying into the print."

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