Coty rises after Citi upgrades to 'neutral'

U.S.-listed shares of CoverGirl parent Coty COTY.N up 3.6% at $5.74 premarket

Citi upgrades stock to "neutral" rating from "buy", raises PT to $8 from $7

Citi says market is not assigning value to co's potential sale of the Wella stake, which COTY targets by end of CY25, expects proceeds to go largely to share repurchases

Believes co's lowered medium-term targets reduce risk of disappointments, sees potential for re-acceleration throughout FY 2026

Says valuation already reflects concerns including trends in consumer beauty remaining challenged

Average rating of 20 analysts on stock is "buy"; with a median PT of $8 - data compiled by LSEG

COTY has fallen 20% YTD, as of last close