Coty Inc. (COTY) Shares Plunge 2.36% Amid Downgrades

Coty Inc. (COTY) shares rose 1.28% today, marking a significant intraday decline of 2.36% and reaching its lowest level since November 2020.

Several financial institutions have recently downgraded Coty's outlook, contributing to the volatility in its stock price. On April 15, 2025, B of A Securities lowered Coty's rating from "Buy" to "Underperform" for both BIT:1COTY and LSE:0I4A. Wells Fargo & Company also reduced Coty's price target from $6.00 to $5.00, while Barclays set an "underweight" rating and decreased their price objective from $5.00 to $4.50. These downgrades underscore concerns about Coty's financial health and future performance.

Coty's financial fragility is evident in its financial statements. Despite generating $6.12 billion in annual revenue, the company continues to report negative pre-tax profits and low operating cash flow. This financial instability has raised alarms among investors and analysts, leading to a cautious outlook on the company's prospects.

These factors collectively reflect the broader challenges facing the sector and the specific financial hurdles Coty must overcome to stabilize its stock performance. The company's ability to address these issues will be crucial in determining its future trajectory in the market.