BofA Securities analyst Bryan Spillane maintains $Colgate-Palmolive (CL.US)$ with a buy rating.
According to TipRanks data, the analyst has a success rate of 57.5% and a total average return of 4.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Colgate-Palmolive (CL.US)$'s main analysts recently are as follows:
The reduction in Colgate-Palmolive's share value, despite surpassing Q3 estimates, is perceived more as a result of profit-taking rather than underlying issues. The company's management acknowledges that sales in North America did not meet forecasts, likely driving the stock's underperformance. However, factors such as shipment timing, innovation, and overcoming previous allocation obstacles are expected to lead to a positive turnaround for the North American division as early as Q4.
The retreat in Colgate-Palmolive's stock following their third-quarter performance, which exceeded expectations, is attributed to market apprehensions regarding maximum valuation and doubts about the continuity of their recent achievements. The revised target reflects the broader trend of decreasing multiples, yet it is considered a compelling opportunity for investors seeking high-quality consumer packaged goods companies with a view leading into 2025.
The analyst indicates that while Colgate-Palmolive's Q3 performance was strong, the share price has experienced a downturn. Future trends are expected to stabilize, which is a standard occurrence. However, this comes in the context of a valuation that has yet to fully normalize, particularly with slight adjustments to the EPS expected for 2025.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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