01:10 PM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target at $13, 12x our FY 25 (Jun.) adj-EBITDA estimate of $1.25B. We keep our FY 24 EPS at $0.47, but lift FY 25's to $0.55 from $0.49. F3Q (Mar-Q) adj-EBITDA of $200M beat by $6M on revenues of $1,386M (+8% Y/Y; +10% Y/Y organic), $12M above consensus. Adjusted gross margins expanded 190 bps Y/Y to 64.8%, driven by premiumization, carryover pricing, easing inflation, and supply chain savings. Adjusted operating margin grew 90 bps Y/Y to 10.4%. COTY ( COTY ) expects FY 24 organic revenue growth to be at the higher end of its previous guide of +9% to +11%. The company also expects FY 24 adj-EBITDA margin expansion to be at the upper end of its previous guidance range of +10 bps to +30 bps. COTY ( COTY ) is on track to de-leverage its balance sheet to about 2.5x at the end of CY 24. The company seeks to move toward 2.0x by the end of CY 25 (Wella stake divestiture also by the end of CY 25). Our Hold opinion reflects the potential for a slowdown in the prestige beauty market.