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Coty Inc. (NYSE:COTY) is among the 12 Cheap Penny Stocks to Invest In Now.

On March 30, Deutsche Bank analyst Steve Powers lowered the firm’s price target on Coty Inc. (NYSE:COTY) to $2 from $3 while maintaining a Hold rating, citing increasing pressures across the consumer packaged goods sector. The analyst pointed to geopolitical tensions in the Middle East as a contributing factor to cost inflation, potential demand softness, and unfavorable currency movements, all of which weighed on sector performance during March.

On March 25, BofA also reduced its price target on Coty Inc. (NYSE:COTY) to $1.50 from $2.50 and maintained an Underperform rating, reflecting downward revisions to FY26 estimates due to sales weakness linked to Middle East exposure. While the region represents a mid-single-digit portion of revenue, it contributes disproportionately to profitability given its premium product mix. Despite these near-term headwinds, the company’s exposure to higher-margin segments highlights its underlying earnings potential once macro conditions stabilize.

Coty Inc. (NYSE:COTY) is a global beauty company with a diversified portfolio spanning fragrances, cosmetics, and skincare. Founded in 1904 and headquartered in New York, the company’s strong brand portfolio and exposure to premium segments position it for recovery-driven upside as macroeconomic pressures ease and consumer demand normalizes.

While we acknowledge the potential of COTY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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