Colgate-Palmolive (CL) is the world’s leading oral care company. It manufactures and distributes goods for the home, healthcare, personal care, and veterinary markets.
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The corporation released its fourth-quarter earnings results last month. Net sales climbed 2% year-over-year to $4.40 billion. In addition, diluted earnings per share rose 3% year-over-year to $0.79 per share.
For full-year 2022, Colgate-Palmolive expects net sales to grow between 1% and 4%, while organic sales are expected to rise between 3% and 5%.
Let’s look at the risk factors for Colgate-Palmolive using the new Tipranks Risk Factors tool.
Risk Factors
Colgate-Palmolive’s key risk categories are Production and Macro & Political, which accounts for 4 risks each of the total 19 risks identified. In its recent report, the organization warned investors about one new risk.
The new risk factor added by Colgate-Palmolive falls under the Tech & Innovation category.
In January 2022, Colgate-Palmolive announced that the firm authorized a 2022 Global Productivity Initiative. The initiative aims to reallocate resources to strategic goals and faster-growth businesses in order to increase efficiency and simplify the supply chain, lowering structural costs.
However, Colgate-Palmolive cautions investors that the program’s effective execution might pose organizational challenges and may necessitate discussions with third parties. As a result, Colgate-Palmolive warns that the corporation may not be able to reap all of the anticipated benefits of the 2022 Global Productivity Initiative. Further, changes in foreign exchange rates, labor rules, or immigration laws may also prevent the projected gains from being realized. As a result, the company’s inability to obtain all of the advantages might have a negative impact on its business, operating results, cash flows, and financial condition.
Wall Street’s Take
Following the Q4 earnings release, Wells Fargo analyst Christopher Carey maintained a Sell rating and decreased the price target to $76 from $78 per share.
Turning to Wall Street, the stock has a Hold consensus rating based on 3 Buys, 9 Holds, and 1 Sell. The average CL price target of $86.50 implies 8.7% upside potential to current levels.
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