TD Cowen Downgrades Colgate-Palmolive, Cuts Target to $85
TD Cowen downgraded Colgate-Palmolive to Hold, cut its price target to $85 and pegged 2026 EPS growth at 4.0% citing tallow costs up 40% year-over-year. It also trimmed its 2027 EPS outlook to 4.5% versus a 7% consensus on U.S. segment investment concerns.
1. TD Cowen Downgrade of Colgate-Palmolive
TD Cowen downgraded Colgate-Palmolive to Hold from Buy, reduced its price target to $85 from $96 and lowered its 2026 EPS growth forecast to 4.0% (below the 5% consensus) due to rising oil-based input expenses and a 40% surge in tallow prices. The firm also trimmed its 2027 EPS outlook to 4.5% versus a 7% consensus, highlighting potential additional investment requirements in the U.S. segment following weak 2025 performance.
2. Canada Reports 0.1% GDP Growth in January
Canada’s real GDP edged up 0.1% in January after a 0.2% gain in December, driven by a 1.2% jump in the energy sector and a 0.2% rise in goods-producing industries. Manufacturing output fell 1.4% due to extended automotive plant shutdowns, while construction grew 1.1% and finance and insurance expanded 0.5% on record foreign investment in Canadian bonds.