Colgate-Palmolive Stock Has More Room for Upside Driven by Organic Sales Growth Inflection, Morgan Stanley Says

MT Newswires Live02-02 23:57

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

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment