Colgate-Palmolive: Strengthening Earnings Visibility and Long-Term Growth Through Premiumization and the 2030 Strategic Plan

TD Cowen analyst Robert Moskow has maintained their bullish stance on CL stock, giving a Buy rating on January 31.

Robert Moskow has given his Buy rating due to a combination of factors that, in his view, position Colgate-Palmolive for solid earnings growth and improving fundamentals through 2026. He notes that the company modestly exceeded expectations in the latest quarter and issued guidance consistent with investors’ hopes for a step-up to mid-single-digit EPS growth at the upper end of the range. Strong operational performance in Latin America, a rebound in India and China, easing cost pressures, and a supportive currency backdrop collectively provide better earnings visibility and flexibility versus peers. Reflecting this, he raises his 2026 EPS forecast to $3.87, implying about 5% year-over-year growth, and maintains his Buy rating along with a higher $96 price target.

Moskow also emphasizes that, although management’s 2026 organic sales outlook is wide at 1%–4% due to macro volatility, there are clear drivers of sequential improvement versus 2025. These include recovering momentum in Latin America (helped by lapping a prior Colgate Total recall), reduced drag from exiting lower-margin private-label pet products, and better trends in key emerging markets supported by tax changes in India and timing benefits from a later Chinese New Year. On a strategic level, he views the 2030 Plan—reorganizing around omni-channel capabilities, modernizing and digitizing the supply chain, and leaning harder into super-premium innovation, especially in U.S. oral care—as a constructive pivot that should enhance long-term growth and margin potential. While he acknowledges ongoing category softness in North America and increased promotional intensity at lower price tiers, he believes Colgate’s premiumization strategy and improving international outlook outweigh these risks, justifying a positive stance on the stock.

In another report released on January 31, TipRanks – xAI also upgraded the stock to a Buy with a $102.00 price target.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CL in relation to earlier this year.