Street View: Signs of momentum returning to Colgate-Palmolive
CL•Emerging markets exposure remains a key driver
- Morgan Stanley ("overweight," PT: $104) sees underlying sales growth rebounding to 3%-4%, driven by pricing strength, market-share gains in oral care and pet products, and strength in emerging markets (EM).
- Piper Sandler ("overweight," PT: $98) remains bullish on the pet portfolio and believes "CL can gain share as it continues to add value through differentiated innovation".
- Jefferies ("hold," PT: $89) says EM demand is strong and CL "remains the best way to play it".
- TD Cowen ("hold," PT: $90) says robust broad-based growth in EM offset the weakness in North America and views Q2 results as strong enough to support the stock's premium valuation.
- TD Cowen expects near-term earnings growth to be negatively impacted by rising cost inflation from the Iran war and limited pricing power in developed markets.
Colgate-Palmolive reaffirms annual sales forecast
Colgate-Palmolive CL.N on Friday reaffirmed its annual sales forecast even after posting a quarterly rise as the toothpaste maker continues to grapple with muted demand in North America.
Median PT of 23 brokerages covering the stock is $98.50; average rating is "buy" - LSEG-compiled data.
