B of A Securities lowered its rating on the maker of Colgate toothpaste, Palmolive dish soap and Speed Stick deodorant, among other products, to neutral from buy.
Analyst Olivia Tong also cut her price target on Colgate-Palmolive to $74 a share from $77, Bloomberg reported.
Despite a more "aggressive stance in driving growth," the New York consumer-products company "struggles to stem share losses in toothpaste," the B of A analyst wrote.
The drop in Colgate-Palmolive's stock price comes even as other companies in the consumer staples sector post gains amid an overall stock market rally.
The B of A analyst also wrote she is concerned "conditions will be more challenging next year" for Colgate-Palmolive, "necessitating another year of outsized investment."
Colgate-Palmolive's stock price hit a high of $75.57 on July 29, but have since trended down.
Colgate-Palmolive has been hit hard in 2019 by a rise in the cost of raw materials, foreign currency fluctuations, and uncertainty about the direction of the global economy, Zacks Investment Research has noted.
The consumer products company has also been forced to boost spending on advertising, which has cut into its bottom line.
Colgate-Palmolive saw its operating margin narrow in the third quarter for a 10th consecutive quarter, according to Zacks.
In a bid to boost growth, the company has been focusing on new products and innovations in its oral care group, including the launch of Optic White, Zacks reported.