Goldman Sachs analyst Bonnie Herzog has maintained their bullish stance on CHD stock, giving a Buy rating on April 23.
Bonnie Herzog’s rating is based on a combination of strong quarterly performance and a favorable outlook for Church & Dwight. In the first quarter, the company surpassed earnings expectations with an EPS of $0.96 compared to the consensus of $0.87, driven by a notable 5.2% organic sales growth and an impressive gross margin of 45.7%. The growth was notably fueled by international business, and despite a significant year-over-year increase in marketing spending, the company was able to report a robust earnings beat.
Furthermore, Herzog is optimistic about Church & Dwight’s full-year sales outlook, which remains unchanged, while the forecast for gross margin expansion has improved. Management’s decision to raise the lower end of its EPS growth outlook signals confidence in the company’s future performance. Although the second quarter outlook is slightly below consensus expectations, the anticipated EPS for the second half of the year aligns with current predictions. Herzog believes that Church & Dwight’s strong growth momentum and strategic reinvestments will likely lead to an upward re-rating of the stock, presenting an attractive risk-reward scenario for investors.
Herzog covers the Consumer Defensive sector, focusing on stocks such as Molson Coors, Philip Morris, and Boston Beer. According to TipRanks, Herzog has an average return of 3.2% and a 58.02% success rate on recommended stocks.
In another report released on April 23, Oppenheimer also maintained a Buy rating on the stock with a $120.00 price target.
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Church & Dwight (CHD) Company Description:
Church & Dwight Co., Inc. engages in the development, manufacture, and market of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, and Specialty Products. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, and household cleaning products; and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment offers personal care products, household and over-the counter products in Canada, France, Australia, China, the United Kingdom, Mexico, and Brazil. The Specialty Products segment consists of sales to businesses which participated in different product areas, namely animal productivity, specialty chemicals, and specialty cleaners. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.
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