Coty (COTY) is expected to report in-line fiscal Q4 results, while the focus will move to its fiscal 2026 outlook or commentary, which is also anticipated to be "largely" in-line with the prior quarter's commentary, RBC said in a Monday note.
The company is poised to remain a "show me" story for the majority of investors, analysts led by Nik Modi said, adding that Coty's LFL growth "should" enhance across fiscal 2026 because of innovation and easier comps.
The analysts also mentioned that the beauty firm's fragrance is one of the "fastest" growing beauty categories, and it has multiple other growth opportunities.
RBC said that Coty's shares are undervalued given the innovation pipeline in the next fiscal year and beyond, forward growth initiatives, and a still growing beauty category, although the firm had a reset fiscal 2025 year.
RBC maintained Coty's rating at outperform with a $12 price target.
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