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On Thursday, Jefferies analyst Kaumil Gajrawala adjusted the price target for Church & Dwight Co. Inc. (NYSE:CHD), reducing it to $100 from the previous $108, while keeping a Hold rating on the stock. The revision follows the company’s announcement of a challenging outlook for 2025, which is expected to lead to negative earnings revisions. Church & Dwight, a major player in the home and personal care (HPC) market, has indicated that its earnings per share (EPS) growth is anticipated to be more significant in the second half of the year as it sees improvements in volumes and productivity.
The company’s current situation has been described as joining its HPC peers in facing today’s difficult economic environment, characterized by a weaker consumer base and retail de-stocking. The near-term outlook for Church & Dwight appears to be tough, with the added pressure of tariff headwinds and a softening consumer demand. Despite these challenges, the company is working on improving volumes and productivity to drive growth, although the analyst noted that this is not guaranteed.
Jefferies’ decision to maintain a Hold rating signals a cautious approach to Church & Dwight’s stock amidst the current market conditions. The firm’s analysis suggests that while there may be potential for growth in the latter half of the year, the near-term obstacles could outweigh the positives.
Investors are closely watching Church & Dwight as the company navigates through these headwinds. The updated price target of $100 reflects the analyst’s revised expectations based on the company’s forecast and current market dynamics. Church & Dwight’s management is likely focusing on strategic measures to enhance productivity and capitalize on any market improvements in the coming months.
In other recent news, Church & Dwight Company Inc. reported its first-quarter 2025 financial results, revealing a mixed performance. The company achieved an adjusted earnings per share (EPS) of $0.91, slightly exceeding the forecast of $0.90. However, revenue fell short of expectations, reaching $1.47 billion compared to the anticipated $1.51 billion. This revenue miss has led to a cautious full-year outlook, with the company projecting organic sales growth of 0% to 2%. Church & Dwight is pursuing strategic alternatives for certain product lines, including FLAWLESS, Spin Brush, and WATERPIK showerhead businesses, to mitigate tariff impacts and focus on core brands.
Analysts from Oppenheimer and Bank of America have been closely monitoring the company’s strategies, particularly in response to the challenging market environment. The company continues to face risks such as weakening consumer spending and competitive pressures in key categories. Despite these challenges, CEO Rick Dirker emphasized the company’s market share gains and commitment to innovation. The company is also focusing on mergers and acquisitions as a primary capital allocation strategy to strengthen its portfolio and drive future growth.
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