Church & Dwight ( NYSE: CHD ) is looking less appealing in the near term, according to Argus Research.
The firm’s analysts cut their rating on the stock to Hold from a prior Buy, advising clients that the risk/reward has become balanced for 2023.
“Church & Dwight is facing pressure from weak sales of high-margin discretionary products, low fill rates on retail orders, and high operating and interest costs,” the firm’s analysis indicated.
The firm added that EPS estimates for the full-year are likely too high, leaving the stock “fully valued” at present. The firm had previously upgraded the stock to Buy in early November, after which the stock rose about 14% into Friday’s close to reach that fully-valued status.
Shares of the consumer staples manufacturer fell 0.5% in premarket trading on Monday.
Read more on why the stock remains a top pick at Oppenheimer .
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Church & Dwight downgraded to Hold at Argus on sales, cost concerns