On Tuesday, Oppenheimer has increased the stock price target for Church & Dwight Co. Inc. (NYSE:CHD) to $120 from the previous target of $110, while maintaining an Outperform rating on the stock. The firm anticipates a robust first-quarter performance from the consumer goods company and suggests that it is on track to meet its full-year guidance.
Church & Dwight, known for household brands such as Arm & Hammer and OxiClean, is set to disclose its first-quarter earnings on May 2, 2024. The updated stock price target from Oppenheimer reflects a positive outlook on the company's upcoming financial results. The firm's analysis indicates that Church & Dwight is likely to continue its strong performance and deliver on the expectations set for the full year.
The analyst from Oppenheimer also expects that the company's management will confirm the fiscal year 2024 guidance during the upcoming earnings call. Historically, Church & Dwight has shown a tendency to reinvest any financial surpluses back into the business, a practice that is anticipated to continue.
Looking ahead, the firm suggests that Church & Dwight could further benefit from strategic mergers and acquisitions (M&A) or a potential stock split. These actions are seen as potential positive catalysts that could further drive the company's stock performance.
Despite the stock's mixed trading following recent earnings reports, Oppenheimer sees any potential profit-taking as an opportunity for investors to buy into the company.
InvestingPro Insights
As Church & Dwight (NYSE:CHD) prepares to release its first-quarter earnings, real-time data from InvestingPro provides a detailed financial snapshot that could be of interest to investors monitoring the company's performance.
With a market capitalization of $25.88 billion and a P/E ratio standing at 34.41, Church & Dwight is trading at a high earnings multiple. This could suggest that investors are expecting high earnings growth in the near future, especially considering the company's PEG ratio for the last twelve months as of Q4 2023 is 0.42, indicating potential for growth relative to its earnings.
Furthermore, Church & Dwight's commitment to shareholder returns is highlighted by its impressive track record of raising its dividend for 19 consecutive years, with a dividend yield of 1.07% as of the latest data. The company's revenue growth is also notable, with a 9.16% increase over the last twelve months as of Q4 2023, showcasing its ability to expand financially.
InvestingPro Tips suggest that analysts are bullish on Church & Dwight, with seven analysts having revised their earnings upwards for the upcoming period. Moreover, the company is praised for maintaining dividend payments for 50 consecutive years, which speaks to its financial stability and reliability as an investment.
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