JPMorgan Adjusts Price Target on Colgate-Palmolive to $104 From $103

BofA reduced its price target for Colgate-Palmolive (CL) to $100 from $102 but maintained a Buy rating. The analyst noted stabilizing consumption trends and improved sentiment in the consumer staples sector ahead of Q3 earnings.

Colgate-Palmolive (India) shares rose 8% after the GST Council recommended expanding input tax credit eligibility. The changes aim to reduce taxes and ease working-capital pressures. The company also benefited from a GST rate cut on oral-care products last year. Analysts estimate cost impacts from the inverted duty structure. The company reported strong revenue growth in Q1 FY27 and outlined growth strategies at an investor day.

Colgate-Palmolive (CL) is considering selling mass-market personal care brands, including Softsoap and Speed Stick, for over $1 billion. The company aims to streamline its portfolio, focusing on higher-margin categories like Hill’s Pet Nutrition and international markets. Q2 2026 net sales rose 4.9% to $5.36 billion, with operating cash flow at $1.74 billion. Proceeds could reduce debt and optimize capital structure, but divestments may impact short-term revenue and earnings predictability.

Piper Sandler reduced its price target for Colgate-Palmolive (CL) to $95 from $98, citing cost pressures from elevated oil prices and inventory headwinds. The firm maintained an Overweight rating and a 2026 EPS estimate of $3.85, but lowered its 2027 EPS estimate to $4.12 from $4.23. CL trades at $87.47 with a P/E ratio of 34.6 and a gross profit margin of 60%. Other analysts have maintained positive outlooks, with RBC and UBS setting higher price targets.

Colgate-Palmolive (CL) is exploring the sale of brands like Softsoap, Irish Spring, and Speed Stick, potentially fetching over $1 billion. The company is working with Goldman Sachs (GS) on the divestiture. Personal care accounted for 17% of CL's 2025 net sales, which totaled $20.38 billion. The move is part of a broader productivity and restructuring program aimed at generating annual pre-tax savings of $200 million to $300 million by 2028.

Altria (MO) paid $6.96B in dividends against $6.95B in net income for FY2025, raising concerns about its dividend safety. Colgate-Palmolive (CL) covers its dividend with earnings and cash flow, but reported a Q4 loss. Altria's 10-year total return was 123%, outperforming Colgate's 55%.