Stifel raises Church & Dwight price target to $105, maintains hold

On Monday, Stifel analysts adjusted their outlook for Church & Dwight Co. Inc. (NYSE:CHD), raising the price target to $105 from the previous $103, while keeping a Hold rating on the stock. The firm’s analysts cited the company’s conservative guidance for the first quarter of 2025, which includes expectations for organic sales and earnings per share (EPS) that are below the consensus estimates.

Church & Dwight, known for its household products, has projected U.S. growth of 2%-3%, which is in line with its long-term growth algorithm of 3%. This outlook reflects a cautious stance on consumer spending, despite the company’s anticipation of U.S. category growth around 2.5%, a figure that aligns with the second half of 2024 but is slightly below the growth seen in the first half of that year.

Stifel’s analysts noted that Church & Dwight is navigating well through a dynamic U.S. consumer environment. The company continues to perform effectively, leveraging modest overseas market share gains. According to the analysts, Church & Dwight’s execution remains solid, even as it faces ongoing challenges in the market.

The firm’s updated price target suggests that while they recognize Church & Dwight’s consistent performance and ability to adapt to market conditions, they advise investors to maintain their current positions without increasing their holdings. The Hold rating indicates that Stifel’s analysts believe the stock is currently valued appropriately, considering the factors influencing the company’s market and financial outlook.

In other recent news, Church & Dwight Co., Inc. reported fourth quarter earnings that aligned with analyst expectations, while its revenues slightly surpassed estimates. The figures came in at $0.77 per share and $1.58 billion respectively. For the full year 2024, the company reported adjusted earnings of $3.44 per share on revenues of $6.11 billion.

The company 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.

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. The company is expected to face challenges in operational growth, as pointed out by Barclays analyst Lauren Lieberman. Despite the concerns, Lieberman acknowledged positive developments such as an improved strategy for international markets and a potential enhancement in the company’s ability to expand through acquisitions abroad.

The company also anticipates persistently high input costs in 2025 but plans to counterbalance this with a favorable product mix, increased volumes, and productivity gains. Church & Dwight’s marketing spend is expected to exceed 11% of sales as it continues to invest in its brands. These are some of the recent developments for the company.

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