Church & Dwight ( NYSE: CHD ) shares marked a modest gain in premarket trading on Wednesday after Deutsche Bank analyst Steve Powers upgraded the stock to “Buy”.
Powers told clients that the stock’s recent choppiness has helped dent the confidence of investors in the typical stable consumer staples stock. For example, shares have marked an over 20% decline from late July amid some cuts to guidance , raising some questions as to management’s ability to execute in a more difficult environment.
However, Powers advised that the guidance cuts and recent decline for the stock have helped set a floor for the stock. In his view, the stock “has taken a break, but it's not broken," and should see more upside with a great deal of investor skepticism price in at this point.
Powers raised his rating on the stock to “Buy” from “Neutral” while trimming his price target from $90 to $85. Shares of the New Jersey-based parent of Arm & Hammer, Trojan, OxiClean, and more rose 0.55% in early premarket trading.
Read more on recent bearish analyses of the stock from Bank of America and Truist Securities .
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Deutsche Bank upgrades Church & Dwight, arguing downside risk is priced in