UBS Raises PT on Colgate-Palmolive (CL); Hard to Poke Holes in Q2

July 27, 2012 4:02 PM EDT Send to a Friend
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Price: $65.32 -0.15%

Rating Summary:
    8 Buy, 12 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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UBS maintains a 'Neutral' on Colgate-Palmolive Company (NYSE: CL) price target of $104.00 (from $98.00).

Analyst, Nik Modi, said, "We saw an improvement in the quality of Colgate’s results for 2Q’12, and underlying fundamentals showed positive signs despite a sizeable currency impact. We estimate that over 75% of Colgate’s EPS growth this quarter came from operating items (SG&A, gross margins) and share buybacks. Top-line/EBIT growth from Latin America /APAC accounted for 89% and 200% of sales/EBIT growth. While Colgate implicitly lowered "all in" EPS due to FX, you can’t really argue with 8.5% organic revenue growth in this environment."

Modi sees impressive quarters from CL, Kimberly Clark (NYSE: KMB), Unilever (NYSE: UN), Natura and L'Oreal the reverse-Procter-Gamble (NYSE: PG) Effect. However, Modi sees cheaper alternatives in the sector (vs. CL at current level).

For an analyst ratings summary and ratings history on Colgate-Palmolive Company click here. For more ratings news on Colgate-Palmolive Company click here.

Shares of Colgate-Palmolive Company closed at $106.38 yesterday.


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