Church & Dwight, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Olivia Tong from Raymond James upgraded the rating on the stock to a Buy and gave it a $100.00 price target.
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Olivia Tong has given his Buy rating due to a combination of factors that, in her view, create an attractive risk/reward profile for Church & Dwight. She highlights that the stock has significantly lagged its household and personal care peers despite the company’s stronger recent record of delivering organic sales and earnings, leaving shares trading below their historical valuation multiple. In addition, Church & Dwight’s portfolio has been deliberately reshaped through disciplined acquisitions such as Hero, TheraBreath, and Touchland, and the divestiture of its vitamins business, shifting the mix toward faster-growing, premium personal care categories while maintaining strong, value-oriented household brands. This combination supports her expectation of steady organic growth, improving reported revenue, and high single-digit earnings growth over time.
Olivia Tong’s rating is based on the belief that Church & Dwight is well positioned across various macroeconomic environments. With roughly a third of its products competing at value price points, the company can capture consumer trade-down in everyday categories, while its newer premium brands provide exposure to higher-growth segments. She also emphasizes the company’s robust free cash flow and moderate leverage, which create room for further bolt-on acquisitions that could offer upside beyond current forecasts. Her $100 price target, based on a price-to-earnings multiple slightly below the company’s long-term average and only a modest premium to the sector, reflects confidence in the upgraded portfolio and consistent execution, while acknowledging broader category growth risks if economic conditions deteriorate.