Coty Inc. (NYSE: COTY ) is one of the cheap penny stocks to invest in . On December 19, Bank of America lowered the firm's price target on Coty to $3 from $3.50 and maintained an Underperform rating on the shares. Heading into 2026, the primary uncertainty for consumer staples is the trajectory of consumption growth. While valuations vary widely across the sector, the firm suggests that there is currently no compelling reason for investors to end their neutrality.
On December 12, TD Cowen also lowered the firm's price target on Coty to $3.75 from $4 with a Hold rating on the shares. The firm revised its valuation model to account for updated revenue growth targets, specifically highlighting a cautious outlook for H1 2026. The firm identified several headwinds, including post-holiday inventory destocking at major retailers and a saturated promotional environment that may compress margins. The report also pointed to sustained pressure within the mass cosmetics category as consumers shift toward value-oriented spending.
Coty Inc. (NYSE:COTY), together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.
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