BMO Capital Raises Church & Dwight from Market Perform to Outperform, Boosts PT from $65 to $71
In a research note published Wednesday, BMO upgraded of Church & Dwight (NYSE: CHD) from Market Perform to Outperform and raised the price target from $65 to $71.
Analyst Connie Maneaty outlined a few reasons for the upgrade, citing organic sales growth of 2.3 percent, a raised dividend by 11 percent and the authorization of a $500 million buyback to reduce the share count.
The BMO analyst also highlighted Church & Dwight's unveiling of new 2014 products and described them as the most significant in its history, similar to the launch of premium-priced OxiClean laundry detergent and the extension of stain-fighting OxiClean.
Church & Dwight should generate free cash flows of $1.5 billion over the next three years, which gives it flexibility for M&A, dividend increases, and share repurchases, Maneaty said.
CHD is trading lower by around 0.89 percent to around $63.24 Wednesday.
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