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Investing.com - JPMorgan has reduced its price target on Colgate-Palmolive Company (NYSE:CL) to $88.00 from $95.00 while maintaining an Overweight rating ahead of the company’s third-quarter earnings release. The consumer goods giant, currently trading at $77.81 and near its 52-week low, appears undervalued according to InvestingPro analysis.
The consumer goods giant is scheduled to report its Q3 2025 earnings on Friday, October 31, before the market opens. JPMorgan cited weaker category performance as a key factor in its decision to lower the price target. InvestingPro data reveals that 9 analysts have revised their earnings downward for the upcoming period, though the company maintains impressive gross profit margins of 60.62%.
The firm noted that while Colgate-Palmolive’s fiscal year 2025 guidance maintains the same overall outlook for top and bottom lines, the company now expects organic sales to be at the low end of its previously stated +2%-4% range due to weak aggregate category performance.
Some positive factors partially offset these challenges, including more favorable foreign exchange estimates that allow management to reiterate its prior net sales growth projection of low-single-digit increases. Additionally, a lower incremental tariff headwind (improved by $125M to a $75M impact) is largely counterbalanced by higher raw and packaging material costs.
JPMorgan’s new $88 price target is based on a 50/50 weighting of a 21.6x P/E multiple and a 14.4x EV/EBITDA multiple applied to calendar year 2027 estimates.
In other recent news, Colgate-Palmolive Company declared a quarterly cash dividend of $0.52 per common share, continuing its long-standing tradition of uninterrupted dividend payments since 1895. This dividend will be payable on November 14, 2025, to shareholders who are on record as of October 17, 2025. Meanwhile, Morgan Stanley has adjusted its price target for Colgate-Palmolive, lowering it to $96 from the previous $104 but maintaining an Overweight rating. The firm expressed a mixed stance, acknowledging both positive and negative market perspectives on the company’s stock. Additionally, Evercore ISI has reiterated its Outperform rating for Colgate-Palmolive with a price target of $100. The firm highlighted the company’s effective strategy, which resulted in a 2% organic sales growth despite challenging market conditions and increased volatility in key global markets. These developments reflect the ongoing analysis and evaluation of Colgate-Palmolive’s financial and strategic positioning by leading investment firms.
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