Wells Fargo upgraded Colgate-Palmolive Company ( NYSE: CL ) to an Equal Weight rating after having the household products stock set at Underweight.
Analyst Chris Carey and team said that the premise over the last several years has been that results had wavered for CL and margins would be under pressure as the company invested to catch up. After seeing that prediction largely play out, the Wells analysts do not see many good reasons to stay negative at the current share price.
"We think being positive CL is now (and has been) consensus among many investors. We're not exactly there—EPS was still maintained down MSD this year, and much has to go right for this recovery to unfold into next year; however, unfold it may, and we are specifically becoming more comfortable with a brewing gross margin story at CL."
Wells Fargo raised its price target on Colgate-Palmolive ( CL ) to $80.
Shares of Colgate-Palmolive ( CL ) rose 0.84% premarket on Monday to $79.40. Earlier in the day, CL announced a $700M investment in dry pet food manufacturing plants.
For further details see:
Colgate-Palmolive breaks free from bearish rating at Wells Fargo