Colgate-Palmolive (CL) Stock Forecast & Price Target

Colgate-Palmolive has demonstrated a solid performance, with organic sales growth of 4.3% in the most recent quarter, driven by volume growth of 2.5% and pricing increases of 1.8%. The company has also shown a strong position in the global market, holding a 41.4% share of global toothpaste sales and a 32.2% share of global manual toothbrush sales, both reflecting year-over-year increases. Furthermore, management's expectations for accelerating organic growth in the second half of 2025, bolstered by favorable comparisons and contributions from foreign exchange-related pricing, signal a robust outlook for sustained sales growth and market share expansion.

Colgate-Palmolive reported organic sales growth of only 4.3%, which fell short of the consensus expectation of approximately 6%, indicating a potential further decline in growth to around 3% in the first half of 2025. The company's gross margin performance in the fourth quarter of 2024 was below consensus, and while guidance suggests expansion in 2025, it is expected to be significantly lower than the 240 basis points achieved in 2024, resulting in reduced reinvestment flexibility. Moreover, the firm's pet care segment experienced a disappointing growth rate of 2.8% driven by volume declines, compounded by adverse foreign exchange impacts and sequential deceleration in both emerging and developed markets.