"TD Cowen cut its earnings estimates to reflect inflationary pressure from higher prices of oil-based inputs and potentially higher costs for tallow, which are up 40% versus a year ago on the Chicago Mercantile Exchange."
"The U.S. division may require incremental investment to improve sales, given weak results in 2025 and a slow start in 2026, with North America posting a -1.8% organic sales decline in Q4 2025."
"Colgate delivered a solid Q4 2025 on the surface, with non-GAAP EPS at $0.95 and revenue of $5.23 billion, but the forward picture is murkier due to the Iran War oil spike."
TD Cowen analyst Robert Moskow downgraded Colgate-Palmolive from Buy to Hold, reducing the price target from $96 to $85. The downgrade is attributed to surging oil-based input costs linked to the Iran War, which are compressing profit margins. Earnings estimates for 2026 and 2027 have been cut due to inflationary pressures from rising oil and tallow prices. The U.S. division's weak sales performance necessitates additional investment to boost growth, as evidenced by negative organic sales in 2025.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]