Stifel Holds but Lowers Target on Coty Inc Stock - Here's Why You Should Pay Attention
In a recent update, Stifel maintained a Hold rating on Coty Inc (NYSE:) stock but adjusted the target price to $11.00 from $12.00 after the company's fourth-quarter results for fiscal year 2024. The results met consensus expectations on sales and adjusted EBITDA.
Coty reported a 5% like-for-like (LFL) sales growth, with a 6% increase in Prestige sales and a 4% rise in Consumer sales. The sales were driven by volume growth and price contribution, with adjusted EBITDA at $165 million for the quarter.
Looking ahead to fiscal year 2025, Coty expects LFL sales growth of 6%-8% and adjusted EBITDA between $1,186 million and $1,208 million, in line with consensus estimates. However, the company anticipates a conservative outlook for the first quarter of fiscal year 2025 due to tougher year-over-year comparisons and cautious ordering patterns from retailers.
Overall, Coty's fourth-quarter performance was solid, with modest market share gains across categories. The consensus adjusted EBITDA is expected to remain stable, reflecting positively on the company's share performance.
In conclusion, Stifel's adjustment on Coty Inc stock target price highlights the company's performance and future outlook. Investors should keep an eye on Coty's growth trajectory and market dynamics to make informed decisions about their investments.
Analysis: Stifel's Hold rating and target price adjustment on Coty Inc stock indicate a cautious but optimistic outlook for the company's future performance. Investors should consider the company's sales growth, EBITDA projections, and market trends when evaluating their investment strategies.