On Monday, Church & Dwight Co. Inc. (NYSE:CHD) received a Buy rating from TD Cowen, accompanied by a price target set at $116.00. The firm initiated coverage on the consumer staples company, citing its long-term value creation and potential for further growth.
The analyst from TD Cowen praised Church & Dwight for its business model, which is characterized by aggressiveness, innovation, and a history of acquisitions. According to the firm, these factors have positioned Church & Dwight as a notable success story in the consumer staples sector.
Despite Church & Dwight's shares already trading at a premium valuation, TD Cowen sees additional upside. The analyst's optimism is based on the company's plans to expand its international footprint and to increase investments in its emerging brands.
The new price target of $116 reflects TD Cowen's confidence in Church & Dwight's ability to accelerate its growth rate. The analyst highlighted the company's strategic moves to bolster its position in the global market as a key driver for the upgraded outlook.
In other recent news, Church & Dwight Co., Inc. has seen a series of significant developments. The company has expanded its Board of Directors with the appointment of Michael R. Smith, who is set to join the Audit Committee of the Board. The company also reported strong first-quarter results, with a 12.9% year-over-year increase in adjusted EPS and revenues reaching $1.5 billion.
Several analyst firms have adjusted their outlook on Church & Dwight. BMO Capital Markets resumed coverage on the company with an Outperform rating, citing the significant scale boost provided by the recent Enerplus (NYSE:ERF) acquisition. CFRA also raised its price target for Church & Dwight, reaffirming its Buy rating. Evercore ISI increased its price target for the company, maintaining a neutral In Line rating, while Goldman Sachs (NYSE:GS) increased its price target and sustained a Buy rating.
Church & Dwight also reported a 5.1% increase in sales and a 5.2% rise in organic sales for the first quarter, with a significant expansion in the company's gross margin. The company has also made a strategic acquisition of Graphico, expanding its footprint in the Japanese market. With these recent developments, Church & Dwight has raised its full-year gross margin and EPS growth forecasts.
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