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BUZZ-Street View: Colgate's long-term outlook remains strong

ReutersFeb 3, 2025 1:18 PM

Toothpaste maker Colgate-Palmolive CL.N forecast annual sales below Wall Street expectations after missing quarterly sales estimates on Friday, hurt by weak demand in North America and Latin America for its household products

Median PT of 24 brokerages covering CL is $100 - LSEG data

RESILIENCE AMID MARKET UNCERTAINTY

Morgan Stanley ("overweight", PT: $104) expects CL to maintain steady organic sales growth driven by strategic reinvestments, with a positive long-term outlook despite short-term challenges

J.P. Morgan ("overweight", PT: $97) sees CL achieving moderate growth and improving profitability in 2025, despite facing challenges from currency fluctuations and tariffs

Morningstar (fairvalue: $84) sees CL to keep investing heavily in R&D and marketing to strengthen its brand, while using strategic price hikes and new product innovations to counter currency impacts

Stifel ("hold", PT: $93) is cautious about co's near-term performance due to slowing volume growth and market share concerns, despite some expected improvements in gross margin

Stifel adds that they anticipate more modest gross margin expansion in 2025 compared to 2024, with increased but slowing ad spending

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