Colgate-Palmolive (CL) stock has more room for upside driven by organic sales growth rebound and solid earnings in Q4, Morgan Stanley said in a Monday research note.
Longer-term subtle catalysts include more impactful marketing, an oral care share rebound, and improving pet trends sequentially. The brokerage said it sees clear earnings revision through 2026.
Colgate set a wide initial fiscal 2026 organic sales growth guidance and low- to mid-single-digit earnings growth, reflecting strong emerging markets and execution trends, as well as a low but steady category growth backdrop and uncertainty around foreign exchange volatility, geopolitics, and sluggish US margins, analysts wrote.
The company reiterated strategic priorities related to enhancing global brand strength, investing more in data and analytics for better pricing discipline, and ramping focus on supply chain flexibility, where AI provides incremental opportunity, according to the note.
The brokerage said it reiterated its overweight rating on the stock and raised its price target to $100 per share from $87.
Price: 90.30, Change: -0.01, Percent Change: -0.01
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