Christopher Carey, an analyst from Wells Fargo, maintained the Sell rating on Colgate-Palmolive (CL – Research Report). The associated price target remains the same with $88.00.
Christopher Carey has given his Sell rating due to a combination of factors impacting Colgate-Palmolive’s financial outlook. He anticipates a normalization in both organic sales and gross margins, particularly in the first half of 2025, which could lead to a compression in the company’s valuation multiples. This expectation is supported by the company’s recent performance, which showed the lowest organic sales growth in nearly seven years and the first contraction in gross margin in two years.
Additionally, Carey points out that Colgate-Palmolive needs to accelerate its organic sales to meet its full-year guidance, especially given the challenging volume comparisons from the previous year. While the company plans to implement price increases in emerging markets and possibly North America, there are concerns about the impact of a strengthening U.S. dollar and the company’s current high price-to-earnings ratio. These factors, combined with limited potential for earnings per share catalysts, contribute to Carey’s cautious outlook and Sell rating.
According to TipRanks, Carey is a 3-star analyst with an average return of 0.9% and a 50.14% success rate. Carey covers the Consumer Defensive sector, focusing on stocks such as Church & Dwight, Clorox, and Coca-Cola.