Coty Shares Just Plunged 21% Today – Find Out What Wall Street Has To Say About The Stock

Citigroup downgraded Coty to ‘Neutral’ from ‘Buy’ and cut its price target to $4.25 from $6.50, adding that the company's fourth-quarter results came in weaker than expected despite a low bar.

Coty (COTY) shares tumbled over 21% by midday trading on Thursday after multiple Wall Street brokerages trimmed their price targets, with Citigroup noting that the beauty company’s outlook indicated the challenges will persist for at least another two quarters.

Citigroup downgraded Coty to ‘Neutral’ from ‘Buy’ and cut its price target of $4.25 from $6.50, according to TheFly. Citigroup stated that the company's fourth-quarter results came in weaker than expected despite a low bar. Retail sentiment on the company improved to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Coty expects like-for-like sales to decline 6% to 8% in the first quarter of fiscal 2026 and 3% to 5% in the second quarter, before it returns to growth in the second half.

Evercore ISI also lowered Coty’s price target to $7 from $10 and maintained an ‘Outperform.’ The brokerage noted that Circana data shows Coty outperforming competitors like LVMH and Interparfums, though U.S. retailers are expected to continue destocking into fiscal 2026.

This leaves Coty heavily reliant on the back end, "creating a tough environment for Coty shares to gain traction," said Evercore analyst Robert Ottenstein, adding that he still sees the stock being undervalued on a sum-of-the-parts basis.

A bullish user on Stocktwits noted that at the current stock levels, another firm could buy Coty.

Deutsche Bank cut its price target on Coty to $4 from $6 and kept its ‘Hold’ rating. Coty stock has declined 45% this year and lost nearly 62% of its value in the last 12 months.

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