Colgate Upside From Higher Oral Care Market Share

Trefis members see Colgate stock benefitting from an increase in market share in oral care products.
Author:
Publish date:

Higher oral care market share could boost

Colgate Palmolive

's

(CL) - Get Report

stock by around 9%.

Over the past week, Trefis members have created forecasts for Colgate Palmolive's global market share of oral care, and their projections suggest that the driver will trend above the estimates of the in-house team of analysts at Trefis.

Colgate Palmolive competes with

Procter & Gamble

(PG) - Get Report

and

Unilever

(UL) - Get Report

in the oral care market.

We currently have a Trefis price estimate of around $85 for Colgate-Palmolive's stock, about 13% above the current market price of $75.

Around 44% of Colgate's stock value can be attributed to its oral care business, making the stock quite sensitive to CL's global market share of oral care.

The average of Trefis member forecasts for CL's global market share of oral care indicates an increase from around 42% in 2010 to around 45% by 2016, compared to the baseline Trefis estimate of an increase from 34% in 2010 to around 38% by the end of the Trefis forecast period.

The member estimates imply an upside of 9% to the Trefis price estimate for Colgate-Palmolive's stock. In the past, CL's global market share of oral care has increased from 26% in 2005 to 33.5% in 2009.

Disagree? You can drag the forecast trend-line above to express your own view, and see the sensitivity of Colgate-Palmolive's stock to CL's global market share of oral care.

Our complete analysis for Colgate-Palmolive's stock is

here

.

Like our charts? Embed them in your own posts using the

Trefis Wordpress Plugin

.

Trefis

is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the U.S.