On December 19, 2025, Coty Inc. (NYSE:COTY) sold its remaining 25.8% stake in the hair care business Wella to KKR for $750 million. The company will retain 45% of proceeds from any future sale or IPO after KKR's preferred return is met. Most of the upfront funds will be used to pay down debt. This transaction ends a portfolio streamlining effort that started in 2020. The company had earlier begun a strategic review of its beauty division, which could lead to sales of brands like CoverGirl and Rimmel.
After the announcement of CEO Sue Nabi's resignation, Evercore ISI downgraded Coty from Outperform to In Line on December 23, 2025, setting a price target of $7. Analyst Robert Ottenstein stated the investment thesis was heavily reliant on Nabi. Evercore said that while shares appear undervalued, it cannot currently see the timing or triggers for a potential value unlock. The firm forecasts outperformance is unlikely and expects the stock to remain cheap.
Grupo Santander also downgraded Coty from Outperform to Neutral, with a price target of $3.50. Analyst Mariano Szachtman suggested the CEO replacement might extend the company's "transition phase." Santander cited the leadership change as a primary reason for the downgrade. The firm noted Evercore ISI had downgraded Coty in response to the same news.
Coty is a global beauty company. It generates 65% of its revenue from premium beauty products, mainly fragrances, and 35% from mass makeup, skin care, and fragrances.