Colgate-Palmolive (CL) Rated Outperform by RBC as Long-Term Growth Remains in Focus

Core Viewpoint - Colgate-Palmolive Company (NYSE:CL) is recognized as a long-term investment opportunity despite facing challenges in the current market environment [2][3]. Group 1: Company Performance and Outlook - RBC Capital upgraded Colgate-Palmolive's rating to Outperform from Sector Perform, maintaining a price target of $88, indicating confidence in the company's long-term growth potential despite recent pressures from slower global category growth [2]. - The CEO highlighted a volatile operating environment influenced by consumer uncertainty, tariffs, geopolitical issues, and high cost inflation, which have impacted sales and profitability [3]. - Colgate-Palmolive updated its organic sales growth outlook to approximately 1.2% for 2025, factoring in a 70 basis point impact from exiting private label products [4]. Group 2: Strategic Focus and Market Position - The company remains committed to its 2030 Strategy, emphasizing its strong brand portfolio in growing categories and significant market share, particularly in emerging markets [3]. - Colgate-Palmolive has a highly efficient global supply chain that supports its demand, positioning the company favorably for future growth [3]. - The company has a long-standing history of reliability as a dividend payer, having increased its dividends for 62 consecutive years, which adds to its attractiveness as an investment [4].