Price Target Adjustment#
Jefferies has lowered its price target for Colgate-Palmolive Company (NYSE:CL) shares from $91 to $88, while maintaining a Hold rating on the stock. Currently, the shares are trading at $83.53, and some analysts believe the stock may be undervalued at this price.
Future Outlook#
The firm expects Colgate-Palmolive's performance in the first quarter to remain stable, but there is growing uncertainty about the company's prospects for the rest of 2026. Jefferies is particularly focused on how demand may be affected by rising input costs, which are the expenses incurred to produce goods. The duration of these cost pressures remains uncertain.
Earnings Estimates#
Jefferies anticipates that Colgate-Palmolive will reaffirm its guidance for 2026 but may indicate a more cautious outlook, potentially leaning toward the lower end of its estimates. The firm has also reduced its earnings per share growth estimate from 5% to 3% year-over-year, which is below the broader market expectation of 4%.
Leadership Changes and Other Ratings#
In addition to these financial updates, Colgate-Palmolive has announced a leadership change in its legal department, with Jennifer M. Daniels set to retire in 2026 and Betsy Fishbone taking over as Chief Legal Officer. Other firms have also adjusted their ratings: Piper Sandler has lowered its price target to $92 while maintaining an Overweight rating, and TD Cowen has downgraded the stock from Buy to Hold due to inflation concerns. Conversely, Deutsche Bank has upgraded Colgate-Palmolive to Buy, raising its price target to $98, citing the company's growth strategy aligned with its long-term goals. These changes highlight Colgate-Palmolive's efforts to adapt to current economic challenges.