Coty Inc. (COTY) sells remaining 25.8% ownership in Wella to KKR for $750 million, retaining 45% of future sale/IPO proceeds. Company plans to pay off debt with the cash. Strategic review led to divestiture to focus on fragrances due to declining demand for color cosmetics.

Coty Inc. ends 5-year program by selling Wella acquired from Procter & Gamble in 2015. Citi cuts price target to $3.50 from $4.25, maintains ‘Neutral’ rating. Company operates through Prestige and Consumer Beauty segments, established in 1904 in New York.

Coty Inc. is considered a fundamentally strong penny stock to buy by analysts. Company faced challenges in mass beauty segment, prompting strategic review and eventual sale of Wella to focus on fragrances. Citi revises price target to $3.50, maintains ‘Neutral’ rating to better reflect 2026 outlook.

Read more at Yahoo Finance.: Coty Completes Wella Divestment to Refocus on Fragrances