- Oppenheimer analyst Rupesh Parikh reiterated an Outperform rating on the shares of Church & Dwight Co Inc CHD and raised the price target from $100 to $107.
- The company reported Q1 sales growth of 10.2% to $1.43 billion, beating the consensus of $1.35 billion.
- The analyst has lifted FY23 and FY24 EPS estimates to $3.10 and $3.35, respectively, from $3.05 and $3.30 previously.
- In the analyst's view, management appears well positioned to deliver more upside than the modeled estimate, but the analyst assumes likely reinvestment consistent with the company's historical practices.
- The analyst expects CHD to fully pay down its remaining term loan ($200 million) in 2023 and with no other maturities outside the loan until 2027, management now has even more flexibility on the capital deployment front.
- The analyst looks favorably upon CHD's product portfolio, track record of innovation, competitive position, historical success in adjusting to changing retail environments, management team, and consistent record of execution.
- The analyst believes shares offer both growth and defense and is optimistic the company is on the path to return to its historical algorithm in 2024.
- CHD remains a top pick for the analyst.
- Price Action: CHD shares are trading higher by 1.09% at $98.07 on the last check Wednesday.
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