Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Monday, Stifel analysts adjusted their outlook on Colgate-Palmolive Company (NYSE:CL), reducing the price target from $95.00 to $93.00 while maintaining a Hold rating on the stock. The revision follows Colgate-Palmolive’s mixed financial results for the fourth quarter of 2024 and its projections for 2025, which align closely with consensus expectations. The analysts highlighted a key point from the fourth quarter results: organic sales growth of 4.3% fell short of the anticipated ~6%, suggesting a further slowdown to approximately 3% in the first half of 2025, continuing the current two-year compound annual growth rate (CAGR). InvestingPro data shows the company’s current revenue growth at 3.31%, with an impressive gross profit margin of 60.6%. According to InvestingPro analysis, 5 analysts have recently revised their earnings downwards for the upcoming period.
Stifel’s analysis indicates that organic growth should pick up in the second half of 2025, with estimates ranging between 4% and 5%. This anticipated increase is attributed to more favorable comparisons and the impact of foreign exchange (FX)-related pricing adjustments. However, the analysts caution that volume could become a concern, given that the fourth quarter of 2024 marked the third consecutive quarter of deceleration. They also note that additional pricing could exert further pressure on volume metrics. Trading at a P/E ratio of 24.7 and a PEG ratio of 0.92, InvestingPro analysis suggests the stock is trading at a low P/E ratio relative to its near-term earnings growth. Discover more valuable insights and 8 additional ProTips with an InvestingPro subscription.
The analysts have revised their earnings per share (EPS) estimates for 2025-2026 upwards, primarily due to a slightly lower-than-expected tax rate. Despite the challenges faced in the latter part of 2024, Stifel expects that the company’s organic growth will regain momentum as the year progresses into the latter half.
In their commentary, Stifel analysts stated, "We lift 2025-2026 EPS estimates mainly for a slightly lower-than-anticipated tax rate following mixed 2024 results and a 2025 outlook largely consistent with consensus. Most notable from 4Q24 results was organic sales of 4.3% missing consensus of ~6%, implying further weakening in 1H25 to ~3%, maintaining the current 2-year CAGR." They also added, "Organic growth should accelerate in 2H25, to ~4%-5% as comparisons become more favorable and contribution from FX-related pricing increases. We think volumes become a watch-point in this scenario given 4Q24 was the third consecutive quarter of deceleration, with additional pricing likely putting some additional pressure on the metric."
Colgate-Palmolive’s stock performance and future projections remain closely monitored by investors, as market conditions and consumer behavior continue to influence the company’s sales and volume growth. The stock is currently trading near its 52-week low at $86.70, presenting an interesting opportunity for investors. For a comprehensive analysis of Colgate-Palmolive’s valuation and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Colgate-Palmolive reported fourth-quarter earnings per share of $0.91 and generated $20.1 billion in revenue over the last twelve months. However, the company’s organic sales growth of 4.3% did not meet the anticipated 5.9% projection. The consumer goods giant has seen significant developments, with its Hill’s pet nutrition brand experiencing a notable 25% growth in the fourth quarter of 2024.
Barclays (LON:BARC) maintained an Equalweight rating on Colgate-Palmolive with a steady price target of $83, while Raymond (NSE:RYMD) James adjusted its price target for the company to $105, maintaining an Outperform rating. Stifel and Deutsche Bank (ETR:DBKGn) revised their stock targets for the company to $95, maintaining a hold rating.
In response to anticipated foreign exchange headwinds and a slowdown in certain global markets, Colgate-Palmolive announced it would implement pricing adjustments in Latin America starting in the first quarter. Despite these challenges, analysts from Raymond James, Stifel, and Deutsche Bank maintain confidence in the company’s strategic positioning and its potential for sustained growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.