BofA Maintains Neutral Stance on Coty (COTY) Heading Into 2026 Amid Uncertain Consumption Growth and Sector-Wide Valuation Disparity

3 weeks ago 15

Maham Fatima

Sun, December 28, 2025 astatine 11:46 AM CST 2 min read

Coty Inc. (NYSE:COTY) is 1 of the cheap penny stocks to put in. On December 19, Bank of America lowered the firm’s terms people connected Coty to $3 from $3.50 and maintained an Underperform standing connected the shares. Heading into 2026, the superior uncertainty for user staples is the trajectory of depletion growth. While valuations alteration wide crossed the sector, the steadfast suggests that determination is presently nary compelling crushed for investors to extremity their neutrality.

On December 12, TD Cowen besides lowered the firm’s terms people connected Coty to $3.75 from $4 with a Hold standing connected the shares. The steadfast revised its valuation exemplary to relationship for updated gross maturation targets, specifically highlighting a cautious outlook for H1 2026. The steadfast identified respective headwinds, including post-holiday inventory destocking astatine large retailers and a saturated promotional situation that whitethorn compress margins. The study besides pointed to sustained unit wrong the wide cosmetics class arsenic consumers displacement toward value-oriented spending.

BofA Maintains Neutral Stance connected Coty (COTY) Heading Into 2026 Amid Uncertain Consumption Growth and Sector-Wide Valuation Disparity

Earlier connected November 25, Rothschild & Co Redburn initiated sum of Coty with a Neutral standing and $3.60 terms target. The steadfast acknowledged imaginable upside for Coty shares but concluded that the stock’s risk-reward illustration remains unattractive astatine existent levels. The steadfast besides expressed interest implicit heightened uncertainty regarding broader class maturation and a deficiency of transparency surrounding the company’s ongoing strategical review.

Coty Inc. (NYSE:COTY), unneurotic with its subsidiaries, manufactures, markets, distributes, and sells branded quality products worldwide. It operates done 2 segments: the Prestige and Consumer Beauty.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.