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On Tuesday, Goldman Sachs reiterated its Buy rating and $108.00 price target for Church & Dwight Co. Inc. (NYSE:CHD), following management meetings at the Global Staples Forum 2025. The acquisition of hand sanitizer company Touchland was a major point of discussion, with investors eager to understand the strategic benefits and growth opportunities it presents.
Church & Dwight’s recent move to purchase Touchland has prompted discussions regarding the strategic fit and long-term international market expansion. Analysts from Goldman Sachs left the meetings with a positive outlook on the acquisition, expecting it to provide additional avenues for top-line growth. Despite a downturn in organic sales growth in the first quarter of 2025 and a revised full-year guidance that fell below the company’s long-term target, Goldman Sachs sees various strategies for Church & Dwight to maintain growth. These include innovation and a diverse product portfolio that spans different price points, offering resilience in fluctuating economic conditions.
The current consumer environment is challenging, marked by volatility that has affected many companies, including Church & Dwight. However, the company is believed to be well-positioned to reach its long-term goals. In response to concerns about market slowdowns, management has highlighted multiple strategies to support growth, including product innovation and a competitive portfolio that caters to both premium and value segments.
Tariffs continue to pose a challenge for Church & Dwight, impacting costs and supply chain dynamics. Nevertheless, management is taking steps to mitigate tariff exposure through strategic supply chain actions and portfolio adjustments. These efforts are part of a broader plan to navigate the current economic landscape and maintain the company’s growth trajectory.
In conclusion, Goldman Sachs’ confidence in Church & Dwight remains steadfast, with the expectation that the company’s ongoing investments and strong brand presence will sustain its growth momentum over time. Despite softer short-term guidance, the firm’s analysis suggests that Church & Dwight has the tools to achieve its targets and capitalize on the opportunities arising from its recent acquisition.
In other recent news, Church & Dwight Co. Inc. has been active with several developments that could interest investors. The company announced a definitive agreement to acquire Touchland, a hand sanitizer brand, for an initial payment of $700 million, with a potential additional $180 million based on future sales targets. This acquisition is expected to be neutral to the company’s 2025 earnings per share due to associated expenses but is projected to be 3% accretive to cash earnings in 2026. Analysts have offered mixed reactions to the acquisition. TD Cowen downgraded the stock to Hold from Buy, citing a slowdown in growth compared to peers, and lowered the price target to $100. Meanwhile, Jefferies adjusted its price target upward to $106, maintaining a Hold rating, viewing the acquisition as a strategic fit targeting younger demographics. UBS also revised its price target to $102 from $110, maintaining a Neutral rating following a first-quarter earnings report that exceeded EPS expectations but showed lower sales and gross margins. These adjustments reflect varying analyst outlooks on Church & Dwight’s strategic moves and financial projections amid broader market challenges.
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