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On Monday, Piper Sandler expressed a positive stance on Church & Dwight Co. Inc. (NYSE:NYSE:CHD), increasing the price target to $128 from the previous $124, while retaining an Overweight rating on the stock. The firm highlighted Church & Dwight as one of their top stock picks for 2025, alongside Inter Parfums (EPA:IPAR), Inc. (NASDAQ:IPAR) and Sally Beauty (NYSE:SBH) Holdings, Inc. (NYSE:SBH), based on recent share performance assessments and potential growth opportunities for the year.
The recommendation follows Church & Dwight's demonstrated capacity for delivering consistent volume growth and maintaining healthy profit margins, trends that are anticipated to continue into the current year. Piper Sandler's analysis suggests that the company's conservative management approach and the potential for strategic acquisitions offer additional upside potential.
Despite Church & Dwight trading at a higher multiple, Piper Sandler justifies the premium with the company's track record of quality and consistency. The firm also notes that there is no immediate concern for a year-end 2024 surge in the stock's price that could negatively impact its performance potential in 2025. This outlook suggests a sustained confidence in Church & Dwight's market position and its ability to deliver shareholder value.
Church & Dwight's reputation for reliability is further reinforced by the analyst's view that the company's strengths are well-recognized, which supports the stock's higher valuation. The firm's positive outlook is a testament to Church & Dwight's strategic positioning and operational execution, which are expected to continue driving the company's performance in the near future.
In other recent news, Church & Dwight Co., Inc. reported an increase in third-quarter sales by 3.8%, surpassing the expected growth of 2.5%. Additionally, the company's adjusted earnings per share (EPS) for the quarter were $0.79, outperforming the forecast of $0.67. Despite a significant asset write-down in the gummy vitamins segment, Church & Dwight experienced growth in international sales and specialty products.
TD Cowen has increased the company's stock price target from $114.00 to $117.00, maintaining a Buy rating. Meanwhile, Jefferies has maintained a Hold rating on Church & Dwight with a price target of $108.00. Both firms recognized Church & Dwight's market share gains and potential for better-than-anticipated performance.
In the personal care sector, Piper Sandler reported mixed spending trends but maintained its Overweight ratings for Church & Dwight. Church & Dwight saw a 1.9% year-over-year increase in sales for its top six brands during a recent 4-week period and a 3.0% year-over-year increase for Q4 to date.
Truist highlighted Church & Dwight as one of the six stocks expected to capture investors' attention over the next six months due to their dynamic corporate narratives. Church & Dwight, rated 'Buy', is anticipated to bounce back from a volatile performance in 2024 with the aid of commodity price relief.
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