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Investing.com - RBC Capital has reiterated its Outperform rating and $14.00 price target on Church & Dwight Co. Inc. (NYSE:CHD).
The firm noted that CHD shares have underperformed following a soft first quarter report, lowered guidance, and investor skepticism regarding the company’s Touchland acquisition. The stock has declined 8.08% year-to-date, though it maintains a strong dividend history, having paid dividends consistently for 51 consecutive years.
RBC Capital expects Church & Dwight to deliver an in-line quarter, suggesting that meeting expectations and reiterating guidance should be sufficient in the current market environment.
The analysts believe Church & Dwight lowered its guidance enough previously and noted that the company expressed positive sentiment during their intra-quarter meeting.
For the remainder of the year, RBC Capital anticipates Church & Dwight will stay on track organically and expects more quantitative information about the Touchland acquisition’s impact on the middle of the profit and loss statement, which could affect earnings per share phasing.
In other recent news, Church & Dwight Co. Inc. has been the focus of several analyst updates and strategic moves. The company recently acquired the hand sanitizer brand Touchland for $700 million, a deal expected to enhance its product offerings and target premium demographics. Analysts from Goldman Sachs expressed a positive outlook on this acquisition, seeing it as an opportunity for top-line growth despite a revised full-year guidance. Meanwhile, Truist Securities increased its price target for Church & Dwight to $110, maintaining a Buy rating, citing the company’s strategic initiatives and new leadership.
RBC Capital Markets upgraded Church & Dwight’s stock rating to Outperform, raising the price target to $114 after discussions with the company’s management. This upgrade reflects renewed confidence in the company’s guidance amidst current market challenges. Jefferies also adjusted its price target to $106, maintaining a Hold rating, following the Touchland acquisition. TD Cowen kept its Hold rating with a $100 target, noting the acquisition aligns with Church & Dwight’s core competence in smaller mergers and acquisitions.
These recent developments highlight Church & Dwight’s strategic focus on growth through acquisitions and management changes. The company’s efforts to revitalize its category include a new Chief Operating Officer to ensure the success of a distribution deal with Pepsi. Despite some challenges, analysts generally maintain a positive outlook, emphasizing the company’s potential for resilience and growth in a fluctuating economic environment.
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