Brokerages have shared mixed views on Colgate-Palmolive following its recent Analyst and Investor Day presentations. Here’s what they’re saying:
Goldman Sachs (GS): Sell | Target Price: ₹2,750
Goldman Sachs maintains a bearish stance, highlighting the company’s consistent growth strategy over the past year. Management’s focus on driving per capita toothpaste consumption, premiumization into science-based toothpastes, and leading category growth in brushes has shown progress. However, GS believes the growth initiatives may not be enough to offset broader challenges, warranting a “Sell” rating.
Jefferies: Buy | Target Price: ₹3,570
Jefferies is optimistic about Colgate’s long-term prospects, assigning a “Buy” rating. The CEO’s emphasis on growing ahead of FMCG peers and diversifying beyond oral care was well-received. While near-term concerns remain over weakening consumption trends and flattening rural demand, Jefferies expects interventions across the value chain and brand investments to drive sustainable growth.
Citi: Sell | Target Price: ₹3,000
Citi also maintains a “Sell” rating, citing near-term pressure from soft demand trends and increased advertising investments. The brokerage notes management’s focus on market development through digital dental screenings and communication around night-time brushing. While these efforts could yield results over the long term, Citi expects earnings growth to remain subdued in the short term.
Brokerage opinions diverge, with Jefferies advocating a “Buy” on Colgate’s diversification and long-term potential, while GS and Citi express caution over soft near-term growth trends and demand concerns. Investors may weigh these perspectives against their risk appetite and time horizon before making decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.
