BofA Sees Execution Strength in Colgate (CL), Modestly Trims Price Target to $98

Colgate-Palmolive Company (NYSE:CL) is one of the best defensive stocks to invest in according to analysts. On August 4, Bank of America Securities analyst Peter Galbo reiterated a Buy rating on Colgate-Palmolive, while lowering the price target from $105 to $98. His revised target follows the company’s Q2 results, which broadly met expectations and reflected signs of operational strength.

Organic sales came in line with expectations as they rose by 1.8% in the quarter, while gross margins improved and advertising costs declined, resulting in stronger-than-expected earnings. Adjusted EPS came in ahead of both Bank of America and street estimates, indicating improved cost control and execution.

BofA Sees Execution Strength in Colgate (CL), Modestly Trims Price Target to $98

A supermarket aisle filled with Household and Personal Care Products.

Galbo also pointed to Colgate’s new three-year productivity initiative as a positive development. The program aims to streamline the supply chain and support long-term strategic priorities. While full-year EPS guidance remains unchanged, the company now expects low single-digit net sales growth and sees reduced currency-related pressure compared to earlier forecasts.

Colgate-Palmolive Company (NYSE:CL) sells household and personal products and boasts many well-known brands in oral care, personal care, home care, and pet nutrition.

While we acknowledge the potential of CL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.