Church & Dwight Is 'Largely Out Of The Woods,' Analyst Sees Further Upside

Truist Securities analyst Bill Chappell upgraded Church & Dwight Company, Inc. CHD from Hold to Buy, increasing the price target from $95 to $105.

The analyst is bullish on CHD's strong Q2 results and increased guidance above the Street for the second time this year. 

Chappell believes the company and its categories are "largely out of the woods" from the post-pandemic reversion and sees further upside to margin and EPS estimates for CHD.

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In particular, the analyst notes CHD's expanded distribution of the most recent acquisitions, Mighty Patch (acne) and TheraBreath, has offset the continued weakness of the struggling vitamin business.

Chappell is pleased with Church & Dwight hitting its long-term growth algorithm and notes the company outperformed its peer group for 15+ years before the pandemic.

Chappell expects EPS of $3.15 (vs. consensus $3.17) for FY23 and $3.44 (vs. $3.43 estimate) for FY24. 

Price Action: CHD shares are trading higher by 0.85% at $94.11 on the last check Monday. 

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