11:22 AM EST, 02/07/2025 (MT Newswires) -- Coty ( COTY ) is positioned to achieve its fiscal Q2 targets though the company remains exposed to broad category pressure, RBC Capital Markets said in a note Friday.

The investment firm said the stronger-than-expected holiday season is expected to help push the company to meet its fiscal Q2 guidance. This upside, however, will be partially offset by ongoing headwinds such as US drugstore closures and retailer caution in the country's consumer beauty sector, RBC added.

"Coty ( COTY ) is feeling the gravity of the current macro realities given the fiscal 2025 guidance cut just one quarter into the year," RBC said. The investment firm also noted that Coty ( COTY ) has delivered consistent results despite market volatility and the company can continue to outperform peers through its prestige fragrances and optionality with other growth pathways.

RBC has an outperform rating on Coty ( COTY ) with a price target of $13.

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