Coty stock upgraded as CoverGirl makes market share gains and Kardashian beauty brands show promise

Coty Inc. stock rose 1.9% in Friday premarket trading after the beauty company was upgraded to buy from neutral at D.A. Davidson. Analysts maintained their $11.50 price target. D.A. Davidson cites market share gains for the CoverGirl cosmetics brand and Sally Hansen nail brand along with steep share declines since a November meeting with Chief Executive Sue Nabi for the rating change. Coty stock has slumped 14.6% over the past month, but shares have rallied 25.4% over the past year. The S&P 500 index is down 3.6% over the last month. Analysts also note the launch of Kylie Skin, a Kylie Kardashian line, is off to “a good start.” KKW Beauty, a line from Kylie’s sister Kim, will launch in the second half of 2022. Other brands, both in the U.S. and in China are also “yielding promising results.” Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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