Colgate-Palmolive: Premium-Valued Emerging Markets and Pet Nutrition Strength Support Buy Rating and Upside into 2026

Peter Galbo, an analyst from Bank of America Securities, maintained the Buy rating on Colgate-Palmolive. The associated price target remains the same with $90.00.

Peter Galbo has given his Buy rating due to a combination of factors tied to Colgate-Palmolive’s stronger-than-expected recent performance and constructive outlook. The company delivered faster organic sales growth and higher earnings per share than both his estimates and market expectations, helped by robust results in Latin America, Asia Pacific, and the Hill’s pet nutrition business, along with improved gross margins and a favorable tax rate. He notes that the fourth quarter marked the strongest organic sales performance of 2025, which he believes positions the company well going into 2026. In addition, management’s guidance for 2026 calls for modest but positive growth in net sales, organic revenue, margins, advertising investment, and earnings, broadly in line with or slightly better than what investors had anticipated.
Galbo also highlights a balanced segment picture, where weakness in certain North American categories is offset by strength in oral care, household cleaners, and key emerging markets such as Brazil and Mexico, as well as steady gains at Hill’s despite a private-label exit. He expects ongoing product innovation in areas of current softness, particularly in North America, to support future improvements. His $90 price objective is based on a premium valuation multiple, which he believes is justified by the company’s improving market share in the U.S., anticipated margin expansion, a demonstrated track record of dependable earnings growth over the past several years, and strong pricing and volume power in emerging markets. Taken together, these dynamics underpin his conviction that the stock offers attractive upside from current levels, warranting a Buy recommendation.

In another report released yesterday, TipRanks – xAI also upgraded the stock to a Buy with a $102.00 price target.

CL’s price has also changed slightly for the past six months – from $85.800 to $90.290, which is a 5.23% increase.