Market Overview

Church & Dwight The Right Stock For Hard Times, Credit Suisse Says In Upgrade

Church & Dwight The Right Stock For Hard Times, Credit Suisse Says In Upgrade

Church & Dwight Co., Inc’s (NYSE: CHD) business model is designed to thrive in today’s environment, and the company has historically maintained stability through difficult times, according to Credit Suisse.

The Church & Dwight AnalystKaumil Gajrawala upgraded Church & Dwight from Neutral to Outperform and raised the price target from $74 to $85.

The Church & Dwight Thesis: Church & Dwight has a value-oriented portfolio, a clean balance sheet and favorable M&A prospects, Gajrawala said in the Thursday upgrade note. (See his track record here.)

Around 37% of Church & Dwight’s sales are generated from value-priced brands, which are strong brands at low price points, the analyst said. The company has driven most of its growth via volume rather than pricing, which should prove advantageous in an economic downturn, he said. 

While terming Church & Dwight as a “serial acquirer,” Gajrawala pointed out that it has not inked a deal in 15 months, possibly due to inflated valuations. As valuations are contracting and with $1 billion in cash on its balance sheet, the analyst said a deal may now be in the offing for Church & Dwight. 

The stock offers “the highest return on capital and asset efficiency in the sector,” yet has underperformed over the past 12 months, trading at a 10-year valuation low versus the S&P 500, according to Credit Suisse. 

CHD Price Action: Shares of Church & Dwight were up 3.04% at $77.65 at the time of publication. 

Related Links:

Benzinga's Top Upgrades, Downgrades For June 18, 2020

Recap: Church & Dwight Co Q4 Earnings

Latest Ratings for CHD

Aug 2020CitigroupMaintainsNeutral
Aug 2020Deutsche BankMaintainsHold
Aug 2020JefferiesMaintainsBuy

View More Analyst Ratings for CHD
View the Latest Analyst Ratings


Related Articles (CHD)

View Comments and Join the Discussion!

Posted-In: Credit Suisse Kaumil GajrawalaAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

PRTKHC Wainwright & Co.Maintains19.0
MCRBHC Wainwright & Co.Maintains41.0
EOLSHC Wainwright & Co.Maintains8.0
PRTSSmall Cap Consumer ResearchMaintains16.0
FIXXHC Wainwright & Co.Maintains30.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at