Key Highlights
- Heading into 2026, the primary uncertainty for consumer staples is the trajectory of consumption growth.
- While valuations vary widely across the sector, the firm suggests that there is currently no compelling reason for investors to end their neutrality.
- On December 12, TD Cowen also lowered the firm’s price target on Coty to $3.75 from $4 with a Hold rating on the shares.
- The firm revised its valuation model to account for updated revenue growth targets, specifically highlighting a cautious outlook for H1 2026.
- The firm identified several headwinds, including post-holiday inventory destocking at major retailers and a saturated promotional environment that may compress margins.
