BUZZ-TD Cowen cuts rating on Colgate to 'hold', flags resin cost risks

Reuters03-31
BUZZ-TD Cowen cuts rating on Colgate to 'hold', flags resin cost risks

** TD Cowen downgrades rating on toothpaste-maker Colgate-Palmolive CL.N to "hold" from "buy"; cuts price target to $85 from $96

** New PT in line with stock's last close

** Brokerage says household and personal care cos are set to take a hit from higher oil-related input costs stemming from the U.S.-Israeli war on Iran, especially rising resin costs

** "Even if the conflict ends soon, we believe the increases will prove sticky due to infrastructure damage," TD Cowen said in a note

** Brokerage also reduced PTs on other HPC cos including Procter & Gamble PG.N and Unilever ULVR.L, UL.N

** 12 of 22 brokerages rate the stock "buy" or higher, 9 "hold" and 1 "sell" or lower; their median PT is $100 - data compiled by LSEG

** As of last close, CL up 8.5% YTD

Company

New PT

Previous PT

Church & Dwight

$93

$112

Clorox

$98

$111

Kimberly-Clark

$96

$105

Procter & Gamble

$142

$156

Unilever

$67/5080p

$80/5800p

(Reporting by Kanchana Chakravarty in Bengaluru)

((Kanchana.Chakravarty@thomsonreuters.com;))

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