NEW YORK (TheStreet) -- Shares of Colgate-Palmolive Co. (CL) are slightly higher as it was reported that the chemical triclosan has been linked to cancer-cell growth and disrupted development in animals, Bloomberg reports.
Regulators are reviewing whether it’s safe to put in soap, cutting boards and toys. Consumer companies are phasing it out.
In May, Minnesota voted to ban it in many products.
A closer look at that application process, however, reveals that some of the scientific findings Colgate put forward to establish triclosan’s safety in toothpaste weren’t black and white -- and weren’t, until this year, available to the public, Bloomberg said.
"We rate COLGATE-PALMOLIVE CO (CL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."