NEW YORK (TheStreet) -- Colgate-Palmolive (CL) stock has been upgraded to "outperform" from "market perform," BMO Capital said Tuesday. The firm increased its price target to $75, noting new product flow seems healthy and the company has increased visibility into 2016.
Separately, TheStreet Ratings team rates COLGATE-PALMOLIVE CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COLGATE-PALMOLIVE CO (CL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CL's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Products industry and the overall market, COLGATE-PALMOLIVE CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $820.00 million or 5.53% when compared to the same quarter last year. In addition, COLGATE-PALMOLIVE CO has also modestly surpassed the industry average cash flow growth rate of 3.56%.
- The gross profit margin for COLGATE-PALMOLIVE CO is rather high; currently it is at 61.09%. Regardless of CL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.97% trails the industry average.
- COLGATE-PALMOLIVE CO's earnings per share declined by 13.4% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, COLGATE-PALMOLIVE CO reported lower earnings of $2.39 versus $2.58 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $2.39).
- You can view the full analysis from the report here: CL Ratings Report