On Wednesday, Stifel maintained a Hold rating on Coty Inc . (NYSE: NYSE:COTY) stock but lowered the shares target to $11.00 from the previous $12.00. This adjustment follows Coty's fourth-quarter results for fiscal year 2024, which met the consensus expectations on sales and adjusted EBITDA.
Coty's like-for-like (LFL) sales growth stood at 5%, aligning with market consensus. This growth was broken down into a 6% increase in Prestige sales and a 4% rise in Consumer sales.
The sales figures were underpinned by low-single-digit volume growth and a high-single-digit price contribution. The adjusted EBITDA for the quarter was reported at $165 million, matching the consensus, with gross margin benefits being offset by increased general and administrative expenses.
Looking forward to fiscal year 2025, Coty has provided initial guidance that suggests LFL sales growth of 6%-8%, which is in line with the consensus of approximately 6%.
The adjusted EBITDA is projected to be between $1,186 million and $1,208 million, closely aligning with the consensus estimate of $1,185 million.
For the first quarter of fiscal year 2025, the company expects LFL sales growth and adjusted EBITDA to be at the lower end of the full-year guidance. This conservative outlook is due to tougher year-over-year comparisons and cautious ordering patterns from retailers.
The report concludes with an observation that Coty's fourth-quarter performance was solid and indicative of modest market share gains across various categories.
The expectation is that the consensus adjusted EBITDA will not undergo significant changes, and Coty's share performance is predicted to follow suit.
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