Is Coty (COTY) One of the Cheap Stocks to Buy for the Next 3 Years?

Coty Inc. (NYSE:COTY) is one of the cheap stocks to buy for the next 3 years. On December 23, Grupo Santander downgraded Coty to Neutral from Outperform with a $3.50 price target. This sentiment was announced as the firm suggested that the company’s transition phase may be extended following the change in leadership.

A day before that, Evercore ISI downgraded Coty to In Line from Outperform with a $7 price target. The shift in rating is largely due to the departure of CEO Sue Nabi, who had been a cornerstone of the firm’s investment thesis. While the firm acknowledged that Coty shares appear fundamentally undervalued at current levels, it noted a lack of visibility regarding the timing and specific catalysts needed to unlock that value. Consequently, Evercore ISI viewed a near-term stock outperformance as unlikely.

On December 19, Bank of America lowered its price target for Coty Inc. (NYSE:COTY) to $3 from $3.50, while maintaining an Underperform rating. In a broad 2026 outlook for the consumer staples sector, the firm noted that consumption growth remains the primary unresolved concern for investors.

Coty Inc. (NYSE:COTY), together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty.

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.