Shares of beauty products company Coty (NYSE:COTY)
fell 4.6% in the afternoon session after Berenberg downgraded the stock to Hold from Buy, citing concerns about a delayed sales growth recovery. The investment firm also significantly cut its price target on the shares to $5.05 from $6.50. Berenberg's decision follows a period of underperformance for the stock and weaker-than-expected sales growth. The firm pointed to a weaker consumer outlook, inventory destocking, and potential headwinds from tariffs as reasons for its revised stance. The downgrade comes after Coty recently reported fourth-quarter results that missed earnings expectations, with a 9% year-over-year decline in like-for-like sales. The company's Prestige segment sales fell by 7%, while Consumer Beauty sales dropped by 12%. Reflecting these challenges, other analysts have also recently lowered their price targets for the beauty company.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Shares of beauty products company Coty (NYSE:COTY)
jumped 8.1% in the morning session after a company disclosure revealed that CEO Sue Nabi purchased $1 million worth of its stock.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Markets dipped Thursday as Coty issued a dismal forecast, Gilead faced headwinds with its new HIV drug, and investors turned cautious ahead of Fed Chair Powell’s Jackson Hole speech. Solid PMI data complicated the interest rate outlook, stalling hopes for imminent rate cuts.
Shares of beauty products company Coty (NYSE:COTY)
fell 19.4% in the morning session after the company reported a surprise loss for its second quarter as key profitability metrics declined.
Coty Inc (NYSE:COTY) shares are tumbling Thursday after the company posted a surprise loss for the fourth quarter. Multiple analysts also cut price targets on the stock following the print.
As the US market prepares to open on Thursday, let's get an early glimpse into the pre-market session and identify the stocks leading the pack in terms of gains and losses.
