Colgate Palmolive's Price Target Raised by JP Morgan Analyst in Sector Review

JP Morgan's Andrea Teixeira raised their price target on Colgate Palmolive Co (NYSE: CL) by 2.3% from $88 to $90 on 2024/01/18. The analyst maintained their Strong Buy rating on the stock.

Teixeira's update was part of a pre-print review of names in their Consumer Goods (Household and Personal Products) coverage area, published ahead of the release of Estee Lauder Companies' Q2 2024 earnings report on 2024/02/05.

According to Teixeira, the consumer goods sector is expected to experience worse quarter-over-quarter (Q/Q) Q4 earnings as companies no longer benefit from "favorable pricing." However, the analyst noted that "volume comps" become "easier" and demand has been relatively modest for most companies.

Looking ahead, Teixeira believes that 2024 will be a more "ordinary year" for companies with December fiscal year ends. The analyst detailed that the organic sales growth for the group in 2024 should be about 3% to 4%, with a better balance between volume and pricing compared to before the pandemic.

In addition to the update on Colgate Palmolive Co, Teixeira also made changes to other names in their portfolio on January 18, 2024:

- Clorox Co: The price target was raised by 4.8% from $145 to $152, and the Hold rating was maintained. - Church & Dwight Co Inc: The price target was raised by 9.2% from $87 to $95, and the Strong Sell rating was maintained. - Elf Beauty Inc: The price target was raised by 34.6% from $130 to $175, and the Strong Buy rating was maintained. - Kimberly Clark Corp: The price target was raised by 5% from $119 to $125, and the Strong Sell rating was maintained. - Estee Lauder Companies Inc: The price target was raised by 27.1% from $118 to $150, and the Strong Buy rating was maintained.

Colgate-Palmolive Company, founded in 1806 and headquartered in New York, NY, offers a wide range of household, health care, and personal care products. Some of its well-known brands include Ajax, Axion, and Palmolive dishwashing liquids, as well as Ajax, Fabuloso, and Murphy household cleaners. The company also owns Hill's, a specialty pet food maker, which sells its products through veterinarians and specialty pet retailers.

As for the consensus forecast among analysts, it is anticipated that Colgate Palmolive Co will deliver earnings per share (EPS) of $2.94 in the upcoming year. If these predictions hold true, the company's next yearly EPS will experience a significant increase of 52.3% year-over-year.

In terms of stock performance, since Colgate-Palmolive's last quarterly report on 2023/09/30, the stock price has risen by 13.7%. Looking at the year-over-year performance, the stock has increased by 5.9%. However, during this period, Colgate-Palmolive is trailing behind the S&P 500, which has seen a growth of 21.7%.

It's worth noting that JP Morgan analyst Andrea Teixeira is ranked in the top 15% out of 4,455 Wall Street analysts by WallStreetZen. Teixeira specializes in the Consumer Defensive, Consumer Cyclical, and Industrials sectors and has an average return of 4.6% and a win rate of 47.7%.

As always, it is important for investors to conduct their own research and consider multiple sources before making any investment decisions.

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