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On Friday, Truist Securities analysts increased the price target for Church & Dwight Co. Inc. (NYSE: NYSE:CHD) stock to $110 from $100, while maintaining a Buy rating. The decision follows the company’s strategic initiatives and recent developments.
The analysts highlighted the company’s efforts to revitalize its category, noting the introduction of a new Chief Operating Officer to ensure the success of the distribution deal with Pepsi. This move is seen as a positive step for Church & Dwight’s operations.
In February, Church & Dwight announced a $1 billion acquisition of Alani Nu, which was completed on April 1. Alani Nu’s energy drink sales were reported to have grown by 88% year-over-year for the 13-week period ending March 30, according to management.
Since the announcement of the acquisition, Church & Dwight shares have risen by 49.2% as of June 2, compared to a 2.6% increase in the XLP index. Despite this rebound, the stock has not yet reached its highs from the previous year.
Truist Securities analysts are monitoring consumer trends for both Alani Nu and the core Celsius brand, as well as market share progression as Alani Nu becomes integrated into Church & Dwight’s operations.
In other recent news, Church & Dwight Co. Inc. has made headlines with its acquisition of the hand sanitizer brand Touchland, a deal that could total up to $880 million. This acquisition is expected to close in the second quarter and is strategically aligned with Church & Dwight’s focus on expanding its portfolio with brands that appeal to younger demographics. The company projects that the acquisition will be neutral to its 2025 earnings per share due to transition costs but anticipates a 3% accretive impact on cash earnings in 2026.
RBC Capital Markets recently upgraded Church & Dwight’s stock rating to Outperform, raising the price target from $100 to $114, citing the acquisition of Touchland as a positive growth driver. Similarly, Goldman Sachs has maintained its Buy rating with a $108 price target, expressing optimism about the strategic benefits and growth opportunities the acquisition presents. TD Cowen, however, has held its rating at Hold with a $100 price target, noting concerns about long-term growth potential in the hand sanitizer market despite the acquisition’s strategic fit.
Jefferies has also adjusted its price target to $106, maintaining a Hold rating, while highlighting the acquisition’s potential to enhance Church & Dwight’s market position amid economic challenges. These developments reflect a general optimism among analysts about Church & Dwight’s strategic moves, despite some concerns about the broader market environment and specific category growth.
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