Barclays raises Colgate ( CL ) target as 2026 growth outlook improves


Colgate-Palmolive Company (NYSE:CL) is included among the 15 Best Wide Moat Dividend Stocks to Invest.

Barclays raises Colgate ( CL ) target as 2026 growth outlook improves
Barclays raises Colgate ( CL ) target as 2026 growth outlook improves

On February 3, Barclays analyst Lauren Lieberman raised the price recommendation for Colgate-Palmolive Company (NYSE:CL) to $88 from $83. The company maintained an equal weight rating. The analyst said in the research note that growth in 2026 should be better than in 2025, but the company likely won’t get the same inflation-driven price increase in emerging markets that it has relied on for years.

This view aligns with what the company shared a few days earlier. On Jan. 30, Colgate forecast full-year sales above Wall Street expectations. Demand for household home products has remained steady, particularly in Latin America and Europe, where consumers have been more resilient than in North America.

In the consumer staples space, companies have slowed price hikes and leaned more heavily on marketing to win back shoppers. Price sensitivity is still an issue in North America. Still, Colgate has held on. Toothpaste, manual toothbrushes and household cleaning products continue to sell, even after the price increases. This steady demand has helped protect margins and absorb higher tariffs and raw material costs. This is often how commodity companies quietly overcome. They don’t need huge volume growth to make the numbers work.

Hill’s Pet Nutrition also showed improvement during the quarter. The segment rebounded from a weak third quarter following the company’s exit from private label pet food. In the fourth quarter, prices rose 2.7%, while volumes were flat year-on-year. North American organic sales fell 1.8%, driven by a 2.3% decline in volumes, partially offset by a 0.5% increase in prices.

For the quarter ended Dec. 31, net sales came in at $5.23 billion, ahead of LSEG’s consensus estimate of $5.12 billion. Adjusted earnings came in at 95 cents per share, beating expectations for 91 cents. Looking ahead, Colgate expects 2026 net sales growth of 2% to 6%, including the impact of tariffs announced starting January 28 for all countries. The midpoint of that range is above analysts’ expectations of 3.5%.

Colgate-Palmolive Company (NYSE:CL) continues to frame itself as a growth company focused on oral care, personal care, home care, and pet nutrition.

While we recognize CL’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.



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