Coty falls after weak earnings forecast, withheld annual outlook
BUZZ-Coty falls after weak earnings forecast, withheld annual outlook ** Shares of CoverGirl owner Coty COTY.N fall 5.6% to $2.87 premarket
** Co on Wednesday forecast current-quarter earnings below expectations and withheld its annual outlook, calling fiscal 2027 a "transition year" as it pushes ahead with a business overhaul
** J.P. Morgan maintains "neutral" rating on Coty, noting the quarter benefited from Amazon Prime Day shipment timing, with weaker sequential performance expected ahead
** "The appetite to invest in yet another plan is likely limited, especially as higher-quality beauty names like Estée Lauder EL.N or e.l.f. Beauty ELF.N both offer better outlooks in our view as the underlying beauty category recovers" - JPM
** Coty forecast Q1 adjusted earnings per share of 11 cents to 13 cents, below analysts' estimates of 14 cents, according to data compiled by LSEG
** Eighteen analysts rate the stock "hold" on average; median PT is $2.8 - data compiled by LSEG
** Up to last close, the stock had fallen 1.6% YTD
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))