Wells Fargo analyst Christopher Carey has maintained their bullish stance on CHD stock, giving a Buy rating yesterday.
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Christopher Carey has given his Buy rating due to a combination of factors that highlight Church & Dwight’s strategic positioning and growth potential. The company’s acquisition of Touchland, a rapidly growing hand sanitizer brand, is a significant move that is expected to rejuvenate revenue through mergers and acquisitions. This acquisition is seen as a strategic fit, given Touchland’s impressive EBITDA margin and growth trajectory, which aligns well with Church & Dwight’s existing portfolio.
Additionally, the financial metrics of the deal are favorable, with the acquisition expected to have a positive impact on cash earnings per share by fiscal year 2026. The hand sanitizer market, though currently underpenetrated, presents a growth opportunity, especially with Church & Dwight’s plans to leverage its marketing capabilities and distribution network to increase household penetration. Furthermore, the company’s strong balance sheet and cash position enable it to pursue future acquisitions without financial strain, making it a compelling investment opportunity.
According to TipRanks, Carey is a 3-star analyst with an average return of 0.6% and a 47.18% success rate. Carey covers the Consumer Defensive sector, focusing on stocks such as Church & Dwight, Procter & Gamble, and Clorox.