DBS analyst Cheria Widjaja maintains $Colgate-Palmolive (CL.US)$ with a hold rating, and sets the target price at $104.
According to TipRanks data, the analyst has a success rate of 100.0% and a total average return of 12.7% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Colgate-Palmolive (CL.US)$'s main analysts recently are as follows:
Colgate-Palmolive's shares experienced a sell-off even though their Q3 results surpassed expectations, which may have been due more to profit-taking rather than underlying issues. Despite North America sales falling below projections, which appears to have been a primary factor in the stock's underperformance, the outlook is optimistic. Anticipated improvements are based on shipment timing, product innovation, and moving past previous allocation challenges, which should set the North America division on a positive trajectory as early as Q4.
The decline in Colgate-Palmolive's stock value post their third-quarter beat-and-raise is attributed to market concerns regarding peak valuation and doubts over the long-term sustainability of their current performance. The adjustment in target reflects the lower multiples observed across the sector. Nevertheless, this scenario is seen as a favorable opportunity for investors seeking to invest in high-quality consumer packaged goods companies with a view toward 2025.
Colgate-Palmolive's third quarter performance was robust, yet the stock experienced a downturn. It's anticipated that trends will continue to normalize. This is expected, especially when considering the valuation is still not completely normalized, with a slight earnings per share recalibration projected 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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