The firm raised its rating to "hold" from "sell," and increased its price target to $65 from $58 after a pullback from its March highs.
Analysts at Canaccord added that they believe China-related issues in the first quarter have been resolved, and that Colgate is now attractive as a defensive play.
"Colgate has manifest defensive attractions and structural advantages and we consider a more constructive approach appropriate given the more reasonable valuation," the firm wrote in a note this morning.
New York City-based Colgate-Palmolive is a consumer products company with oral care, personal care, home care, and pet nutrition products marketed in more than 200 countries and territories around the world.
Separately, TheStreet Ratings team rates COLGATE-PALMOLIVE CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COLGATE-PALMOLIVE CO (CL) a BUY. This is driven by a few notable 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 increase in net income, notable return on equity, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."