Colgate-Palmolive Set for Organic Sales Growth Rebound, Morgan Stanley Says

MT Newswires Live05-04

Colgate-Palmolive (CL) is poised to return to 3% to 4% organic sales growth after a rebound to about 3.5% in Q1, with momentum expected to build in H2, Morgan Stanley said Sunday in a report.

Colgate-Palmolive's difficult 2025 is "in the rear-view mirror," with organic sales growth rebounding to 3% in Q4 from 1.2% in Q3 and improving into early 2026, supported by "solid pricing power," 45% exposure to faster-growing emerging markets and a likely bottom in North America, the report said.

Further improvement in organic sales growth is expected in the near term as the drag from private-label discontinuations fades and North America stabilizes, the report said.

Colgate-Palmolive on Friday reported Q1 adjusted EPS of $0.97, beating estimates, with stronger-than-expected 2.9% organic sales growth, while maintaining its 2026 outlook, despite $300 million in cost pressures expected to be partly offset by savings, the report said.

Morgan Stanley raised its price target on Colgate-Palmolive stock to $100 from $95 and kept its overweight rating, naming the company as a top pick in the household and personal care sector.

Price: 85.73, Change: -1.53, Percent Change: -1.75

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