JPMorgan Cuts Colgate-Palmolive (CL) Price Target to $88, Keeps Overweight Rating Ahead of Q3 Results

Core Viewpoint - JPMorgan has lowered the price target for Colgate-Palmolive Company from $95 to $88 while maintaining an Overweight rating ahead of the company's Q3 earnings release, reflecting concerns over its outlook due to a nearly 14% decline in stock price [1][2]. Group 1: Earnings Outlook - Colgate-Palmolive is set to report its Q3 results on October 31, with expectations of organic sales growth now projected at the lower end of the 2% to 4% range due to weaker category trends [2]. - Despite maintaining its overall full-year 2025 guidance for revenue and earnings, the company faces challenges across product categories [2]. Group 2: Financial Adjustments - Favorable foreign exchange conditions have allowed the company to reaffirm its outlook for low-single-digit net sales growth [3]. - Tariff-related costs have improved by $125 million, now expected to total around $75 million, although these savings are offset by increased expenses for raw and packaging materials [3]. Group 3: Dividend Stability - Colgate-Palmolive remains a reliable income stock, having grown its dividends for 62 consecutive years [4]. - The company offers a quarterly dividend of $0.52 per share, resulting in a dividend yield of 2.66% as of October 16 [4].