Coty shares: Price analysis before buying or selling

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Yes

ISIN code: US2220702037

Ticker: NYSE: COTY

Index or market: NYSE

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Elements to consider before selling or buying Coty shares

Analysis N°1

First of all, the development of the brand's high-end products for men will be closely monitored, as this segment is currently experiencing strong growth.

Analysis N°2

Coty's activity can also be seasonal with peaks in sales at certain times of the year such as Valentine's Day or the festive season.

Analysis N°3

Coty's marketing and advertising strategy is also essential to its growth and must therefore be the subject of your attention.

Analysis N°4

The group will also take into account brand buy-outs in order to expand its market share and offer new products to its customers.

Analysis N°5

Finally, a complete analysis of the competition in this sector will also have to be carried out, with the evolution of the market shares of each and the other key events of the day.

Analysis before buying or selling Coty shares

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General presentation of Coty

The Coty Group is an American group specialising in beauty and care products. It was created in 1904 in Paris by François Coty and has since become one of the largest players in this sector in the world.

The Coty Group mainly produces and markets perfumes, cosmetics and skin and body care products. It has gained a lot of notoriety since its launch thanks to partnerships with major fashion designers and certain international celebrities, particularly with regard to its fragrances. He also created the Céline Dion fragrance line, which has been a huge success.

But the Coty company also owes its success to the acquisition of many other companies and brands. Thus, the brands belonging to Coty can be divided into three main categories with :

The different brands in the Coty Beauty range which include Adidas, Lady Gaga, Beyoncé Parfums, Pierre Cardin, Céline Dion, Chupa-Chups, Beckham, Playboy and Kylie Minogue.
The various brands in the Coty Prestige range which include Balenciaga, Calvin Klein, Roberto Cavalli, cerruti, Chloé,Chopard,Davidoff, Guess,Gucci, HugoBoss, Marc Jacobs,Tiffany, Vera Wang, Vivienne Westwood, Burberry and Lacoste.
Finally, the various brands of the Coty cosmetics range with notably OPI, Philosophy, Lancaster,Chloé, Rimmel or Bourjois.

Thanks to this diversity of ranges and products, Coty has been able to position itself on the international cosmetics market.

The major competitors of Coty

Although the Coty company is today one of the largest international groups in the cosmetics and perfume sector, it is of course not the only one trying to make a place for itself on this market. The group has always faced strong competition from other companies, most of which are listed on the stock exchange or are part of listed groups. Here you can find out who the direct competitors of this company are:

Estée Lauder

The Estée Lauder group is an important competitor of Coty in the field of perfumes but also cosmetics with the Clinique and Donna Karan brands.

IntreParfums

The IntreParfums group which owns brands such as Balmain, Boucheron or MontBlanc is also a very serious competitor of Coty.

The French group L'Oréal

which offers exactly the same product ranges as Coty must also be watched as a competitor.

LVMH

Next comes the LVMH group which, although offering more diversified activities, also markets renowned perfumes.

Procter & Gamble

The Procter & Gamble Group with its Dolce & Gabbana, Gucci and Hugo Boss fragrances sold its fragrance division to Coty in 2016 and should therefore no longer be considered a known competitor of Coty.

The major partners of Coty

The Coty company has always pursued an effective strategy based on targeted partnerships, whether with fashion houses, designers or celebrities. Among the most important partnerships that the group has sealed in recent years, here are a few concrete examples.

Prada

In 2013, the Coty group has set up a partnership with the Prada group within the framework of an exclusive agreement. The objective of this partnership was to enable the two entities to create together, develop and market a line of perfumes under the Miu Miu brand.

Publicis

In 2016, Coty is setting up a different kind of partnership by entrusting its marketing strategy to the media agency Publicis. The agency will be in charge of the group's current brands, but also of future brands being acquired by the group, such as P&G Specialty Beauty Business.

Burberry

Finally, in 2017, Coty announced that it had acquired the beauty activities of the Burberry group for 211 million euros, which had a very strong impact on the share price of each of these two shares on the stock market.

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The factors in favour of a rise in the Coty share price:

To better understand how the Coty Group will face its future and increase its growth you first need to know its major strengths and weaknesses. This is what we shall examine here with details of its principal strong and weak points that could support or damage its opportunities for growth in the coming future.

We shall start with a detailed summary of the major advantages of the Coty Company that could enable it to growth in the coming future:

Firstly we can of course cite the renown and reputation of the Coty Group as one of its major advantages. In fact Coty is positioned among the leaders in the beauty sector around the world and benefits from a strong brand image.
In the same way, we should note the diversity of this group’s activities as an advantage. The Coty Company exercises activities in a variety of sectors including perfumes, cosmetics, face care, skin care and solar protection. This variety of products enables the company to diversify its sources of income and respond to the various requirements of its clients thereby reaching a wider clientele.
Still on the subject of the Coty Group’s strengths and advantages, we also note the long history of this company. This long history and accumulated experience enables this company to position itself among the luxury brands. In the same way, the French culture associated with this brand is a factor in its favour and proffers a competitive advantage.
We should of course also mention the large brand portfolio held by the Coty Group. This company often acquires new brands to strengthen its portfolio and thereby increase its sales and brand name on numerous markets.
The Coty Group also invests heavily in research and development with the aim of regularly launching new products for its clients and prospects.
Also among the advantages of this company is the fact that it often collaborates with celebrities for the promotion of its products, notably its range of perfumes.
Finally, the last advantage of the Coty Group that we shall mention here concerns of course the strategic partnerships that this company regularly implements with other companies and brands with the aim of increasing its name and presence on the market.

The factors in favour of a drop in the Coty share price:

We shall now pass on to the principal weak points of the Coty Group as follows:

Firstly we should note we are a little dissatisfied with the fact that the Coty Group remains anchored firmly in the western culture with its marketing strategy which further complicates the penetration of certain markets that may be more advantageous such as certain Asian markets.
The group has also encountered difficulties in entering the luxury goods market and still remains mainly confined to the mass market sector.
Among the significant disadvantages of this company we can also note the extremely strong competition from certain large companies that are highly active in this sector such as L'Oréal and Procter & Gamble.
Finally, the global economic crisis that began a few years ago and was recently strengthened by the Covid pandemic has negatively influenced this company’s activities. The financial results published over the last few years illustrate in fact a drop in the company’s turnover as well as an overall downturn in its net profits. It is therefore necessary for this company to achieve a recovery.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Where to find the financial information relating to the Coty share price?

As you undoubtedly already know, a full analysis of the Coty share price is only possible through the use of several types of analyses. You will therefore need to complete a full financial analysis of this asset and also study the various financial results, events and publications of this group. To do so it is best to consult the information available on the official website of the Coty Company where all the financial results and other pertinent information is published.

Should you buy or sell Coty shares?

Replying to this question is not as simple as it may first appear. In fact, before deciding to implement a buying or selling trading strategy on this asset you need to first determine whether this asset will probably rise or fall in price. To do so, it is best to complete comprehensive and pertinent analyses of the Coty share price using a technical analysis and a fundamental analysis and compare the different signals obtained through these two analytical methods.

Where and how can you trade in Coty shares online?

It is not necessary to actually buy Coty Group shares through a bank or financial entity to invest in this asset. The online trading platforms available through reputable brokers actually enable you to take position on a rise or fall in this share price, as well as other assets on the international stock markets, thorough the use of ‘Contracts for the Difference’, also known as CFDs.

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Analysis before buying or selling Coty shares