Jefferies analyst Kaumil Gajrawala has maintained their neutral stance on CL stock, giving a Hold rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Kaumil Gajrawala has given his Hold rating due to a combination of factors influencing Colgate-Palmolive’s current performance and future prospects. While the company reported a decent second quarter with both top and bottom-line beats, the overall market conditions remain challenging. The company’s strategy, including innovation and reinvestment, appears to be working, but the backdrop of increasing raw material costs and slowing category growth presents significant hurdles.
Despite these challenges, Colgate-Palmolive’s long-term outlook is positive, with expectations of market share growth and improved profitability through new productivity plans. However, in the near term, the limited catalysts for upside and the modest category improvements expected by management have led to a cautious stance. The company’s guidance has been adjusted to the lower end of its range, reflecting these uncertainties, which justifies the Hold rating at this time.
Gajrawala covers the Consumer Defensive sector, focusing on stocks such as PepsiCo, Celsius Holdings, and Boston Beer. According to TipRanks, Gajrawala has an average return of 2.6% and a 54.71% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $87.00 price target.