Colgate-Palmolive: Strategic Initiatives and Market Adaptation Drive Buy Rating Amidst Challenges

TD Cowen analyst Robert Moskow has maintained their bullish stance on CL stock, giving a Buy rating today.

Robert Moskow has given his Buy rating due to a combination of factors that suggest potential for future growth despite current challenges. Colgate-Palmolive reported a slight miss in their organic sales and adjusted their 2025 guidance downward, reflecting weaker consumer spending. However, the company attributes some of this weakness to temporary factors like pantry de-loading, and they noted a modest uptick in demand in emerging markets. This indicates that the company has the capability to adapt and potentially meet their earnings per share target of $3.55.
Colgate-Palmolive is also making strategic moves to improve its position, such as increasing advertising efforts and optimizing spending in response to market conditions. The company’s forecast suggests a sequential improvement in sales growth, driven by pricing actions in Latin America and the U.S., as well as an innovation pipeline that includes product relaunches. Additionally, Colgate-Palmolive’s investment in expanding U.S. capacity could provide a competitive edge by reducing reliance on imports. These strategic initiatives and financial flexibility support Moskow’s optimistic outlook for the company’s stock.

Moskow covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Vital Farms, and Kimberly Clark. According to TipRanks, Moskow has an average return of 2.5% and a 50.57% success rate on recommended stocks.

In another report released today, Citi also maintained a Buy rating on the stock with a $108.00 price target.