Apr. 21 at 4:26 PM
Colgate-Palmolive’s
more than 16% fall since the start of the U.S.-Iran war is overdone, and it’s time for investors to get in the stock, according to Rothschild & Co Redburn.
The bank upgraded its rating on the company to buy from neutral, and hiked its price target to
$100, indicating a nearly 20% gain from Monday’s close. While the stock has fallen on fears of weakened demand due to consumers grappling with higher energy prices from the conflict in the Middle East, analyst Edward Lewis thinks that perspective is misguided.
“More than 60%/80% of its sales/organic sales growth (respectively) are generated in regions where we see limited impact from the war,” Lewis wrote in a Tuesday note. “We now expect more pressures on gross margin in FY26/27 given energy prices. However, we see EPS remaining resilient given Colgate’s strong track record on productivity savings.”
$CL