Colgate-Palmolive downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank downgraded Colgate-Palmolive to Hold from Buy with a price target of $109, up from $107. The firm says consumer packaged goods stocks have generally performed well since the beginning of Q2 earnings, aided by the prospects of lower interest rates, a weaker U.S. dollar, and a degree of defensive bias in the market. This is despite fundamentals that have arguably deteriorated since the spring, especially with respect to sales demand, the analyst tells investors in a research note. As a result, the firm continues to approach the final third of 2024 “with a degree of caution,” expecting most companies to be fighting against prospects of downward organic sales growth revisions even if “lingering margin flexibility” help to preserve earnings forecasts in the near-term. Deutsche Bank downgraded Colgate-Palmolive, saying it is “treading lightly into autumn” on the consumer packaged goods group.