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Why Analysts Lowered Target Price on Colgate-Palmolive Stock

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Recent analyst activity

Colgate-Palmolive’s (CL) unimpressive financial performance in the recent past and persisting challenges have led several analysts to lower their target price on Colgate-Palmolive stock. Moreover, SunTrust downgraded Colgate-Palmolive stock to “hold” from “buy” and reduced its target price to $65 per share from $80.

Analysts made the following downward revisions in their target prices:

  • Macquarie lowered it to $60 from $65.
  • Barclays decreased it to $58 from $64.
  • Berenberg reduced it to $63 from $67.
  • Morgan Stanley decreased it to $60 from $65.
  • Wells Fargo lowered it to $58 from $62.
  • Jefferies cut it to $56 from $60.
  • Argus reduced it to $65 from $70.
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Rating and target price

Most of the Wall Street analysts covering Colgate-Palmolive stock maintain a neutral outlook. Among the 21 analysts providing recommendations on CL stock, 15 analysts suggest a “hold,” four analysts recommend a “buy,” and two analysts have a “sell” rating. Analysts have a consensus target price of $62.88 per share on CL stock, which is roughly on par with its closing price on November 16 and indicates that the upside to its stock seems limited.

In comparison, the majority of Wall Street analysts also maintain a neutral outlook on other household and personal care product manufacturers including Procter & Gamble (PG), Clorox (CLX), Kimberly-Clark (KMB), and Church & Dwight (CHD).

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