Piper Sandler cuts Church & Dwight price target to $126

Published 03/02/2025, 15:00
Piper Sandler cuts Church & Dwight price target to $126

On Monday, Piper Sandler made an adjustment to the price target for Church & Dwight Co. Inc. (NYSE:CHD), reducing it from $128.00 to $126.00. Despite the lower price target, the firm kept its Overweight rating on the stock.

Analysts at Piper Sandler addressed the recent quarterly results and investor day held by Church & Dwight, suggesting that any share price weakness presented an opportunity for investors. The company’s fourth-quarter performance and the event took place last Friday, which might have influenced investor sentiment.

The firm acknowledged the potential challenges that Church & Dwight may face. However, Piper Sandler expressed confidence in the company’s management, commending their ability to set realistic expectations and their consistent performance in high-pressure consumer (HPC) markets, particularly in terms of volume and innovation.

Furthermore, the analysts pointed out that Church & Dwight’s international business is growing in significance. They also highlighted the company’s continued interest in mergers and acquisitions (M&A) as a positive factor. These elements, according to Piper Sandler, could drive the company’s shares beyond their current valuation.

In their commentary, Piper Sandler emphasized the strategic opportunities for Church & Dwight, stating, "CHD remains a top idea, and we’d take advantage of any weakness following Friday’s Q4 results/investor day. We’re cognizant of potential challenges, but we also believe management has properly set expectations and continues to instill confidence in their ability to remain one of the stronger and more consistent HPC names in terms of volume and innovation. International is also becoming a more meaningful contributor, and the focus on M&A isn’t fading. These are the kind of catalysts that we believe could push shares beyond the current valuation, and we’d urge investors to get ahead. Our PT moves to $126."

In other recent news, Church & Dwight Co., Inc. reported fourth quarter earnings that met analyst expectations while revenues slightly surpassed estimates. The company’s earnings per share were $0.77, and revenues were recorded at $1.58 billion. For the full year 2024, the company reported adjusted earnings of $3.44 per share on revenues of $6.11 billion. Church & Dwight also provided guidance for 2025, projecting organic sales growth of 3-4% and adjusted earnings per share growth of 7-8%. However, the first quarter guidance for 2025 fell short of expectations, forecasting an adjusted EPS of $0.90, which is a 6% year-over-year decrease and below the $0.98 consensus.

Stifel analysts adjusted their outlook for Church & Dwight, raising the price target to $105 from the previous $103 and maintaining a Hold rating on the stock. In another development, Barclays (LON:BARC) revised the price target for Church & Dwight from $90.00 to $93.00, while maintaining an Underweight rating on the stock. These recent developments underscore the ongoing analysis of Church & Dwight’s performance and future prospects by financial analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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