Hagens Berman Launches Investigation into Coty Inc. (COTY); Berenberg Reduces Price Target

Core Insights - Coty Inc. (NYSE:COTY) is currently under investigation by Hagens Berman, a shareholder-rights law firm, to determine if the company misled investors regarding its growth and digital inventory strategy [2][3] - The company's stock experienced a significant decline of 21% on August 21, attributed to "retailer inventory destocking issues" impacting its Q4 and full-year results [3] - Berenberg has lowered its price target for Coty from $6.50 to $5.05, reflecting weaker sales growth expectations and reduced FY2026 EPS forecasts [4] Company Overview - Coty Inc. is one of the largest beauty companies globally, specializing in fragrances, color cosmetics, and skin and body care products [5] - The company is listed among the 10 cheapest penny stocks to buy currently [5] Market Context - The investigation and price target reduction come amid broader concerns about the company's sales growth and margin pressures due to tariff impacts and changes in compensation structures [4]