03:16 PM EDT, 08/16/2024 (MT Newswires) -- Coty's ( COTY ) consistent positive organic growth and volume increases bolster the outlook for the stock after a recent slump, RBC Capital Markets said Friday in a report.

"Overall, we would be buyers on the recent weakness" in the shares, RBC said. "While luxury companies have posted mixed results leading to broad pressure on the group, results for fragrances continue to be a standout," and Coty's ( COTY ) fiscal Q4 quarterly results probably will meet guidance, the report said.

"We believe that fundamentals are solid, growth drivers are in place and leverage is on a path of improvement," RBC said.

Although Coty ( COTY ) hasn't provided explicit 2025 guidance, RBC expects growth targets of 6% to 8% for revenue, 9% to 11% for earnings before interest, taxes, depreciation and amortization and low-to-mid 20% for earnings per share.

"With continued core growth, category whitespaces and opportunity for geographical expansion, we believe that these targets will be achievable," the report said.

RBC has an outperform rating on Coty ( COTY ) with a price target of $14. Results from Q4 are expected Tuesday.

Coty ( COTY ) shares rose 2.1% in recent trading Friday.

Price: 9.62, Change: +0.20, Percent Change: +2.07