Colgate-Palmolive: JP Morgan maintains Overweight, lowers PT to $88 from $95.

Colgate-Palmolive: JP Morgan maintains Overweight, lowers PT to $88 from $95.

JP Morgan has adjusted its price target for Colgate-Palmolive Company (NYSE: CL) to $88.00 from the previous $95.00, while maintaining an Overweight rating. The decision was made ahead of the company’s third-quarter earnings release, scheduled for October 31, 2025. Despite the downward revision, the firm continues to view Colgate-Palmolive as undervalued, with the stock currently trading at $77.81 and near its 52-week low.

The primary reason for the reduced price target is the anticipated weaker category performance. Nine analysts have revised their earnings expectations downward for the upcoming period. However, the company maintains strong gross profit margins of 60.62%. JPMorgan expects Colgate-Palmolive’s organic sales to be at the low end of its previously stated +2%-4% range due to weak aggregate category performance. The firm also notes that more favorable foreign exchange estimates and a lower incremental tariff headwind (improved by $125M to a $75M impact) partially offset the challenges.

Colgate-Palmolive’s fiscal year 2025 guidance remains unchanged in terms of top and bottom lines, but the company expects organic sales to be at the lower end of its previously stated range. The firm’s new price target of $88 is based on a 50/50 weighting of a 21.6x P/E multiple and a 14.4x EV/EBITDA multiple applied to calendar year 2027 estimates.

Additionally, Colgate-Palmolive recently declared a quarterly cash dividend of $0.52 per common share, payable on November 14, 2025, to shareholders on record as of October 17, 2025. This marks the company’s long-standing tradition of uninterrupted dividend payments since 1895.

Other analysts have also adjusted their price targets for Colgate-Palmolive. Morgan Stanley lowered its target to $96 from $104, maintaining an Overweight rating. Evercore ISI reiterated its Outperform rating with a price target of $100, highlighting the company’s effective strategy despite challenging market conditions.

These developments reflect the ongoing evaluation of Colgate-Palmolive’s financial and strategic positioning by leading investment firms. Investors should closely monitor the company’s earnings release to assess the impact of these revisions.