Bernstein analyst Callum Elliott maintained a Hold rating on Colgate-Palmolive (CL – Research Report) today and set a price target of $96.00.
Geoff Meacham has given his Hold rating due to a combination of factors regarding Colgate-Palmolive’s recent performance and market valuation. The company has shown evidence of a successful turnaround, with Meacham noting a significant increase in Colgate’s global toothpaste market share and a surge in investment spending. Despite these positive developments, including a record high advertising spend and a projected rise in R&D expenses, Meacham remains cautious about upgrading the stock rating.
The hesitation to move to a more optimistic rating stems from the stock’s current valuation, which already appears to reflect the improvements in Colgate’s competitive position and growth. With a target price set at $96, implying a modest upside, and the stock trading at the higher end of its historical valuation range, Meacham suggests that any further sustained re-rating is difficult to justify. While the stock may be appealing for investors seeking exposure to large-cap U.S. Staples, the potential for significant growth in stock price is not compelling enough to warrant a stronger recommendation than Hold.
Elliott covers the Consumer Defensive sector, focusing on stocks such as Colgate-Palmolive, Kimberly Clark, and Monster Beverage. According to TipRanks, Elliott has an average return of 4.1% and a 50.00% success rate on recommended stocks.
In another report released on January 29, Wells Fargo also maintained a Hold rating on the stock with a $88.00 price target.
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Colgate-Palmolive (CL) Company Description:
Colgate-Palmolive Company is a multinational consumer products name engaged in production and distribution of household, personal care, oral care, health care, and veterinary products. The company sells its products across more than 200 countries and territories. The company’s well known global brands include Colgate, Palmolive, Speed Stick, Lady Speed Stick, Ajax, Softsoap and Hill’s pet Nutrition. It has two operating business segment – Oral, Personal and Home Care, and Pet Nutrition.
Read More on CL:
- Colgate-Palmolive price target raised to $93 from $85 at Morgan Stanley
- Colgate-Palmolive price target raised to $88 from $80 at Wells Fargo
- Colgate-Palmolive upgraded to Outperform from Market Perform at Raymond James
- Colgate-Palmolive price target raised to $91 from $90 at JPMorgan
- Colgate-Palmolive price target raised to $95 from $93 at Citi
