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UBS Maintains a 'Neutral' on Church & Dwight (CHD); Doing All the Right Things, but We Prefer Estee Lauder (EL)

February 8, 2012 1:20 PM EST
CHD Hot Sheet
Rating Summary:
    1 Buy, 3 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on Church & Dwight (NYSE: CHD) price target raised from $44 to $48.

UBS analyst says, "Despite lower gross margins (due to higher input costs and unfavourable product mix) Church & Dwight beat our EPS estimate by $0.03. We note this result is in a quarter where most HPC companies have reported poor quality of earnings and have lowered guidance (Estée Lauder (NYSE: EL) being the only exception in our coverage). We think 3-4% sales growth and 9-10% EPS growth are reasonable assumptions for 2012, though spending levels behind detergents (including Pods) and portfolio mix shifts will dictate whether upside to these targets is possible."

UBS slightly raises estimates: FY11 from $2.19 to $2.22 and FY12 from $2.41 to $2.44.

For an analyst ratings summary and ratings history on Church & Dwight click here. For more ratings news on Church & Dwight click here.

Shares of Church & Dwight closed at $47.63 yesterday, with a 52 week range of $36.78-$84.73.


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