In a report released today, Dara Mohsenian from Morgan Stanley maintained a Buy rating on Colgate-Palmolive (CL – Research Report), with a price target of $104.00.
Dara Mohsenian has given his Buy rating due to a combination of factors that position Colgate-Palmolive favorably against its peers. The company’s better-than-expected first-quarter earnings per share (EPS) underscore its robust standing, driven by a flexible foreign exchange strategy, a defensive business mix, recent reinvestments, and strong pricing power. These elements contribute to improved EPS visibility and are expected to enhance organic sales growth as pricing strategies take effect and category growth rebounds.
Colgate-Palmolive’s first-quarter performance was notably stronger than its peers, with a significant operating profit beat and a year-over-year EPS growth of 5.4%, which contrasts with the average decline seen in competitors. Unlike its peers, who have revised their EPS guidance downward, Colgate-Palmolive has maintained its guidance within its prior range, indicating resilience and flexibility. These factors collectively provide a solid foundation for the company’s future earnings potential, justifying the Buy rating.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CL in relation to earlier this year.