Goldman Sachs Sees Church & Dwight Speculation As Opportunity To Exit Shares
Shares of Church & Dwight Co., Inc. (NYSE: CHD) are up roughly 3 percent since rumors began to swirl that the company has become a takeover target for either Rickett or Procter & Gamble Co (NYSE: PG). Goldman Sachs sees the boost in Church & Dwight's price as an "opportune exit window" and reiterates its Sell and $81 price target.
Goldman's Jason English sees the the recent rotation of Church & Dwight's leadership as the likely culprit of a reduced probability that the company would be bought out. Compounding English's concern is the "record level share price and valuation" in the face of a fundamental slowdown.
There is also anti-trust concern regarding Proctor & Gamble scenario and English says Rickett is focused on OTC markets, which means "the market is ascribing too high a probability to M&A at this point."
Church & Dwight shares closed Thursday's session up 2.18 percent to $99.09.
Latest Ratings for CHD
|Mar 2017||JP Morgan||Initiates Coverage On||Neutral|
|Dec 2016||BMO Capital||Initiates Coverage On||Market Perform|
|Nov 2016||Wells Fargo||Assumes||Market Perform|
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