Church & Dwight: Hold Rating Amidst Growth Challenges and Strategic Adjustments

TD Cowen analyst Robert Moskow downgraded the rating on Church & Dwight (CHD – Research Report) to a Hold today, setting a price target of $100.00.

Robert Moskow has given his Hold rating due to a combination of factors affecting Church & Dwight’s current and future performance. The company recently reduced its 2025 guidance significantly, indicating that its business model and product categories are not achieving the expected growth rates. This reduction in guidance, coupled with a lack of positive catalysts in the U.S. market and limited exposure to higher growth international markets, contributes to the Hold rating.
Furthermore, while Church & Dwight has made impressive market share gains and expanded its high-growth brands, it faces challenges such as declining U.S. category growth and a struggling vitamin business. The company’s decision to exit certain businesses due to tariffs and the competitive pressure from private competitors further complicates its growth prospects. Additionally, compared to its multinational peers, Church & Dwight has less international exposure, which limits its ability to benefit from favorable economic conditions abroad. Despite these challenges, the company has a strong track record in creating shareholder value through mergers and acquisitions, which could potentially alter its current trajectory.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $100.00 price target.