Colgate-Palmolive's Q3 Results Unlikely to Materially Shift North America Narrative, RBC Says

MT Newswires Live00:21

Colgate-Palmolive (CL) should post inline Q3 results and the narrative around North America operations is unlikely to materially change as trends indicate soft consumption, RBC Capital Markets said in a Wednesday note.

North America is expected to be a headwind in the near term as management recently described attempted fixes as a "strategic reset for the next three to five years," according to the note. The company is due to report Q3 results on Friday.

RBC said it expects emerging markets to do the heavy lifting, driving overall organic sales while North America finds its footing in a challenging consumer environment.

Channel checks skewed negative on the pet category as macro pressures impact consumption, combined with a demographic shift and negative segment mix, analysts wrote.

Management expects raw material and tariff costs to be higher in H2, RBC said, adding that recent forex movements indicate greater headwinds in 2027.

RBC reiterated its outperform rating on the stock and price target of $104 per share.

Price: 91.93, Change: -0.24, Percent Change: -0.26

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