In a report released today, Filippo Falorni from Citi upgraded Church & Dwight to a Hold, with a price target of $87.00.
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Filippo Falorni has given his Hold rating due to a combination of factors affecting the stock’s performance and valuation. While Church & Dwight experienced significant underperformance in 2025 due to challenges such as inventory destocking and weaker organic growth, the outlook for 2026 shows potential improvement. Factors like cycling inventory destocking, contributions from the Touchland acquisition, and the divestiture of the lower-performing VMS business are expected to support topline growth next year.
However, despite the projected recovery in sales and profitability, the stock’s valuation remains a concern. While its current valuation of 23x CY26 P/E is below its historical 27x average, it still carries a ~25% premium compared to its large-cap peers, consistent with its historical average. This premium, along with uncertainties related to its long-term growth trajectory, has led the analyst to maintain a neutral stance, keeping the recommendation at a Hold.