Shares of Colgate-Palmolive Company CL have been in focus after a new study revealed that CBD, a cannabis compound, was safe for managing acute dental pain.
The company is now likely to generate 4.5% year-on-year organic sales growth in fiscal 2024, versus earlier expectations of 3.6%, according to BofA Securities.
The Colgate-Palmolive Analyst: Bryan Spillane upgraded the rating for Colgate-Palmolive from Neutral to Buy, while raising the price target from $75 to $90.
The Colgate-Palmolive Thesis: The company could generate growth higher than its long-term targets over the next 12 months, which would be a catalyst for its stock, Spillane said in the upgrade note.
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The analyst listed the key drivers for fiscal 2024 sales and earnings upside as:
- “US volume and markets share turning positive driven by growth in non-measured channels, marketing and merchandising investments, new products and easier comparisons.”
- Growth in emerging markets being above average, “helped by continued pricing in Latin America, strong growth in India and broad market share improvement in oral care.”
- “Margin expansion as price continues to keep up with costs, pet acquisition built in the base.”
CL Price Action: Shares of Colgate-Palmolive had risen by 0.27% to $76.48 at the time of publication on Friday.
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