Church & Dwight Co. Inc. (CHD) PT Raised to $116 at Goldman Sachs
Goldman Sachs analyst Bonnie Herzog raised the price target on Church & Dwight Co. Inc. (NYSE: CHD) to $116.00 (from $110.00) while maintaining a Buy rating.
The analyst comments "CHD reported better than expected 1Q24 results with strong organic sales growth of 5.2%, driven by healthy volume growth of 3.7% and better than expected gross margin expansion. Despite the stronger Q1 organic sales results, management maintained its FY24 organic sales outlook of 4% - 5%, but now expects higher gross margin expansion and therefore raised the lower-end of its FY24 EPS growth outlook to +8-9% (vs. +7-9% prior). However, mgmt. guided Q2 top and bottom line growth below expectations ahead of the print as it expects more moderate gross margin expansion and higher marketing spend behind its robust innovation pipeline. Overall, we are encouraged by CHD's strong Q1 results and reiterate our Buy rating. CHD’s robust top-line growth has been driven by better execution and upside from recent high growth acquisitions, including Therabreath and Hero as the company has successfully built out distribution for those brands, and we believe its distribution expansion still has room to play out over the next few years, which, along with its international expansion efforts should drive its top-tier long-term organic sales growth. While we largely maintain our EPS estimates, we raise our price target by $6 to $116 as we expect the stock to re-rate higher."