Colgate-Palmolive (NYSE:CL) gained about 1.5% yesterday after Top-rated Analyst Mark Astrachan from Stifel Nicolaus upgraded the stock’s rating to Buy from Hold. The analyst’s new price target of $81 implies over 12% upside potential in CL stock.
The rating upgrade is based on the upbeat performance of CL’s Pet Nutrition division, weakening inflation, and the anticipation of increased pricing power, which could potentially lead to sales growth in 2023. Astrachan is predicting a 5%-7% organic sales increase this year. Furthermore, the analyst believes Colgate-Palmolive will continue to expand its market presence in the global toothpaste market.
Astrachan’s bullish rating comes ahead of the third-quarter results release, which is scheduled for October 27. Currently, the Street anticipates CL to report earnings of $0.80 per share for Q3, along with revenue of $4.82 billion.
What is the Price Forecast for CL Stock?
With eight Buys and six Hold ratings, Colgate-Palmolive stock holds a Moderate Buy consensus rating. On TipRanks, the average CL stock price forecast of $81.54 implies a 13% upside potential to current levels. The stock has lost 7.1% year-to-date.
