Citi downgraded Church & Dwight (CHD) to Sell from Neutral with an unchanged price target of $90. The analyst views the stock’s relative valuation as “too elevated” after the 2023 outperformance. The firm also sees a potential slowdown in Church & Dwight’s U.S. sales trends, driven by increased competition from Procter & Gamble (PG) in liquid laundry and Clorox (CLX) recovering shelf space in cat litter. Citi believes buy-side expectations are elevated and says Church & Dwight could see a relative multiple re-rating without significant upside to numbers. It advocates a pair trade of overweight Clorox and underweight Church & Dwight.
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