Piper Sandler maintains Overweight rating on Colgate stock

Published 28/05/2025, 10:00
Piper Sandler maintains Overweight rating on Colgate stock

On Wednesday, Piper Sandler reaffirmed its Overweight rating and $109.00 price target for Colgate-Palmolive Company (NYSE:CL), representing an 18% upside from current levels. According to InvestingPro analysis, the company is currently trading above its Fair Value, with a market capitalization of $74.91 billion. The endorsement follows a recent meeting with Colgate’s CEO, Noel Wallace, and Chief Investor Relations Officer, John Faucher, which provided insights into the company’s performance and outlook.

During the meeting, discussions centered around the current tariff environment, which appears to be managed effectively by Colgate-Palmolive. The company’s robust financial health, rated as GOOD by InvestingPro, supports its ability to navigate these challenges. The focus has now shifted towards the company’s performance across different geographic regions and the potential for both positive developments and challenges that could impact the company’s ability to meet its guidance, with impressive gross profit margins of 60.81%.

Piper Sandler’s analyst highlighted the stability of Colgate-Palmolive within their coverage universe. The firm sees the company’s geographic strengths and commitment to shareholder returns as key factors supporting the investment case for the company’s stock at its current price levels.

The analyst’s commentary underscored the view that Colgate-Palmolive is managing its international operations well, mitigating risks, and capitalizing on opportunities for growth. This perspective supports the firm’s confidence in maintaining the Overweight rating and a price target of $109.00.

Colgate-Palmolive’s emphasis on stable business practices and shareholder value is an integral part of the company’s strategy. As noted by Piper Sandler, these elements contribute to making Colgate-Palmolive an attractive investment in the eyes of the firm. The reiterated rating and price target reflect a continued positive outlook for the company’s stock performance.

In other recent news, Colgate-Palmolive Company reported its financial results for the first quarter of 2025, showcasing a mixed performance. The company posted earnings per share (EPS) of $0.85, slightly missing the expected $0.87. However, revenue came in at $4.91 billion, surpassing the forecast of $4.89 billion, indicating strong sales momentum. Despite the earnings miss, the Hill’s Pet Nutrition segment remains a key growth driver, with Goldman Sachs maintaining a Buy rating on Colgate-Palmolive, supported by a price target of $106.00. The firm highlights Hill’s Pet Nutrition’s potential for mid-single-digit organic sales growth, fueled by product innovation and increased market presence. Colgate-Palmolive plans to exit the private label business by the third quarter of 2025, as it continues to navigate tariff impacts expected to add $200 million in costs for the year. The company also announced ongoing investments in its supply chain and product innovation, with plans to mitigate tariff impacts through productivity and innovation strategies. Looking ahead, Colgate-Palmolive expects top-line improvement in the latter half of 2025, with a focus on key markets such as North America, Asia, and Africa Eurasia.

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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