Morgan Stanley Sees Greater Visibility with Rebounding US Results for Colgate-Palmolive Company

In a report published Tuesday, Morgan Stanley analyst Dara Mohsenian reiterated an Overweight rating and $73.00 price target on

. In the report, Morgan Stanley noted, “Our OW rating on CL is driven by its sustainably favorable topline/EPS growth/ROIC profile vs. peers from a long-term perspective (see pages 13-15). However, we also believe CL is very well situated near-term to post superior results to peers. In this note, we analyze US scanner data to illustrate CL's recent US results are far superior to peers, with CL market share gains and superior product category growth. We also continue to believe that CL's emerging markets business is better positioned to withstand macro pressure than peers with CL's defensive business mix and EM market share gains, and CL has greater pricing power than peers in an inflationary environment with negative FX/rising commodities (although CL does have greater FX exposure than peers).” Colgate-Palmolive Company closed on Friday at $66.73.