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What Wall Street Suggests for Colgate-Palmolive Stock

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Jan. 23 2019, Updated 7:30 a.m. ET

Goldman upgraded CL stock

Most of the analysts covering Colgate-Palmolive (CL) have maintained neutral stances on its stock. However, Goldman Sachs upgraded Colgate-Palmolive on January 9 and raised its target price to $74 from $63. Goldman expects Colgate-Palmolive’s underlying sales to accelerate sequentially.

However, we expect Colgate-Palmolive’s top and bottom lines to remain weak in the coming quarters—at least until the first half of 2019. Meanwhile, its margins could remain suppressed. Adverse currency rates, weak organic volumes, and higher packaging and raw materials costs are likely to hurt its top and bottom lines. However, higher pricing and cost savings could provide some cushion.

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Rating and target price summary

Among the 22 analysts providing recommendations on CL, 14 analysts have given it “holds,” six have given it “buys,” and two have given it “sells.” Analysts have a consensus target price of $63.79 per share on the stock, which implies a potential upside of 1.9% based on its closing price of $62.63 on January 18.

Meanwhile, Wall Street has maintained neutral recommendations on the shares of other major household and personal care product manufacturers, as heightened competition, adverse currency rates, and margin headwinds are likely to hurt their financials in the near term.

The majority of analysts maintain “hold” recommendations on Procter & Gamble (PG), Kimberly-Clark (KMB), Church & Dwight (CHD), and the Clorox Company (CLX).

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