Anna Lizzul, an analyst from Bank of America Securities, reiterated the Buy rating on Church & Dwight (CHD – Research Report). The associated price target remains the same with $120.00.
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Anna Lizzul has given her Buy rating due to a combination of factors surrounding Church & Dwight’s strategic acquisition of Touchland. This acquisition, valued at up to $880 million, is expected to enhance CHD’s portfolio by adding a fast-growing brand in the hand sanitizer category. Touchland’s alignment with CHD’s acquisition criteria, including its asset-light nature and potential for gross margin improvement, supports the positive outlook. Additionally, the acquisition is projected to be EPS-neutral in 2025 and EPS-accretive in 2026, indicating future financial benefits.
Moreover, Anna Lizzul sees potential for increased household penetration and expanded distribution channels for Touchland, similar to CHD’s previous successful acquisition of Hero. The opportunity to broaden customer demographics and develop new product lines using Touchland’s mist technology further strengthens the growth prospects. The reiterated Buy rating and a price objective of $120 reflect the anticipated market share gains and strategic acquisition potential, positioning CHD favorably against its peers.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CHD in relation to earlier this year.