04:02 PM EDT, 05/08/2024 (MT Newswires) -- Coty ( COTY ) has once again performed impressively in Q3, surpassing expectations in both "prestige" and "mass businesses," RBC Capital Markets said in a note emailed Wednesday.

"Overall, [Coty ( COTY )] continues to outpace the prestige fragrance market, and we believe [management] deserves credit for their consistent delivery over the last 15 quarters."

Coty's ( COTY ) Prestige Segment soared with 13% like-for-like growth in Q3, outperforming expectations, especially in China. Meanwhile, the Consumer Beauty segment exceeded expectations with over 6% like-for-like growth, driven by color cosmetics and mass fragrances, but faced challenges in US mass color cosmetics due to pricing slowdown and changing consumer habits.

Modest volume growth was driven by sales in Brazil and mass fragrances, but other areas experienced moderate declines, RBC said. "Looking ahead, [Coty ( COTY )] could potentially continue to see a mix headwind from Brazil given the size of the opportunity in the country and the region's heavier index towards consumer beauty," it added.

Based on Q3 results RBC has revised its forecast for the company's full-year 2024 like-for-like growth to +11.1%, adjusted EBITDA to $1.09 billion, and EPS to $0.46.

RBC reiterated its outperform rating on Coty ( COTY ) with a price target of $14.

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