In a report released today, Dara Mohsenian from Morgan Stanley maintained a Hold rating on Church & Dwight (CHD – Research Report), with a price target of $100.00.
Dara Mohsenian has given his Hold rating due to a combination of factors impacting Church & Dwight’s performance. The company’s first-quarter results were weaker than anticipated, with a miss on organic sales growth and gross margin, partially offset by reduced marketing expenses. Additionally, Church & Dwight has revised its full-year guidance downward, citing significant reductions in organic sales growth and earnings per share, influenced by retailer inventory cuts and tariff impacts.
Furthermore, the company is facing challenges such as negative category growth trends and declining market share, which are exacerbated by tariff pressures. Despite efforts to restructure its portfolio by divesting certain businesses, these actions highlight the unique challenges the company faces in the current cycle. The negative trends in U.S. scanner data and the reduction in earnings estimates for the coming years have led to a decrease in the price target, justifying the Hold rating.
In another report released on May 2, Evercore ISI also maintained a Hold rating on the stock with a $102.00 price target.