UPDATE: Canaccord Genuity Upgraded Colgate- Palmolive and Raised PT
In a report published Friday, Canaccord Genuity analyst Eddy Hargreaves upgraded Colgate- Palmolive Company (NYSE: CL) to Sell Hold and raised the PT from $52 to $58 after “impressive” Q3 results.
Canaccord noted the emerging market pressure in which Colgate dominated this quarter. Hargreaves specifically compares Colgate and Unilever where Unilever reported organic sales in EM of 5.9 percent compared with a 10.3 percent H1 growth. The analyst wrote, “Colgate's emerging market growth of 9.5% in Q3 followed 9.5% in Q1 and 8.5% in Q2. Group organic sales growth of 6.0% (5.0% volume, 1.0% price) was in line with expectations.”
Growth in Latin America of 9.5 percent exceeded Hargreave's expectations, compared to sluggish growth in North America of 1.5 percent. The Science Diet re-launch and Ideal Balance Launch is also notably seeing traction. Colgate- Palmolive has 45 percent of global shares in toothpaste, 33 percent in manual toothbrush and 17 percent in mouthwash.
Colgate- Palmolive closed at $63.04 on Wednesday.
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