"One of our biggest long-term concerns is competitor investment/expansion into Colgate's D&E markets," Wells Fargo analysts wrote in a Feb. 24 report. "For example, yesterday P&G detailed aggressive global expansion plans for Oral Care. This was not a surprise to Colgate management and they seem prepared to aggressively respond depending on competitor actions. However, we will see how this alters the competitive landscape in these markets."
Shares of Colgate-Palmolive hit a 52-week high Tuesday of $95. The stock's 52-week low of $76.39 was set on March 18.Colgate-Palmolive has an estimated price-to-earnings ratio for next year of 16.1 times; the average for personal products companies is 15.39. For comparison, both Kimberly-Clark (KMB) and Avon (AVP) have lower forward P/Es of 13.19 and 10.84, respectively. Sixteen of the 24 analysts who cover Colgate-Palmolive rated it hold. Five analysts gave the stock a buy rating and three rated it sell. TheStreet Ratings gives Colgate-Palmolive an A grade with a buy rating and a $114.87 price target. The stock has risen 2.59% year to date.
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