BofA/Merrill Lynch upgraded Church & Dwight Co. Inc. (NYSE: CHD) from Underperform to Neutral with a price target of $85.00 (from $75.00) saying the stock is worthy of a premium valuation.

Analyst Olivia Tong notes while the stock already enjoys a top-of-group multiple, as one of the HCP names with the lowest earnings risk they do not expect valuation to contract near term. CHD generates 84% of its sales in the U.S., has a well-supported, value-oriented product portfolio, commodities should provide tailwind, heavy spending in in the base and cost containment discipline should continue, driving FY15 earnings.

The firm trimmed FY 2015 EPS from $3.30 to $3.28, FY 2016 EPS from $3.59 to $3.57, FY 2017 EPS from $3.92 to $3.90.

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 $82.69 yesterday.