This Colgate-Palmolive Analyst Is Turning Bullish On Heels Of CBD, Dental Pain Study

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.

Check out other analyst stock ratings.

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.

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasUpgradesPrice TargetTop StoriesAnalyst RatingsTrading IdeasBofA SecuritiesBryan SpillaneExpert IdeasStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!