Why TD Cowen Remains Cautious on Coty Inc. (COTY)

Core Viewpoint - Analysts recommend Coty Inc. (NYSE:COTY) as a consumer defensive stock to buy, with a revised price target of $3.75, indicating a potential upside of about 13% from the current price level [1][2]. Financial Performance - In the first quarter, Coty Inc. reported an EPS of $0.12, missing analyst estimates of $0.15, while revenue was $1.58 billion, aligning with guidance [3]. - The company experienced an 8% decline in total net revenue but remains a significant player in the global fragrance market [3]. Future Outlook - Coty Inc. anticipates a rebound in net revenue in the second half of fiscal 2026, with CEO Sue Nabi emphasizing a commitment to re-accelerating performance [3][4]. - The CFO, Laurent Mercier, expressed expectations for a return to profitable sales growth in the same period [4]. Market Position - Coty Inc. operates as a provider of branded beauty products globally, structured into two segments: Prestige and Consumer Beauty [4]. - The company is expected to see growth in U.S. prestige sell-in in the second quarter, driven by ultra-premium products and fragrance mists [2].