Wells Fargo Downgrades Church & Dwight Co. Inc. (CHD) to 'Market Perform' on Valuation/CEO Actions

Wells Fargo downgraded Church & Dwight Co. Inc. (NYSE: CHD) from Outperform to Market Perform, price target range maintained at $44-46.

Wells analyst says, "Our rating change is primarily based on valuation, as the stock is currently trading near the top of our valuation range based on our 2013 estimates. However, we also feel the actions by CEO Craigie outlined in a 1/10/12 8-K (deletion of emails) will likely raise some potential credibility/confidence questions about CEO Craigie among investors in the near term. Collectively, these factors give us pause and result in our Market Perform rating. CHD's strong management team, track record, and business model remain attractive to us longer term. We believe 2012’s guidance will be within the Street’s expectations at its February 7 Q4 2011 release. Potential acquisitions will be a likely catalyst given the company's excellent track record. Bottom Line: Near term we remain cautious on CHD awaiting pullbacks or an acquisition given proximity to our valuation range."

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

Shares of Church & Dwight Co. Inc. closed at $45.94 yesterday.

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