- Investment firm Piper Sandler has lowered its price target for Colgate-Palmolive (NYSE:CL) to $95, citing difficulties in the North America business due to soft consumer demand and increased competition.
- Colgate-Palmolive is responding with a strategic overhaul, focusing on premium innovation in oral care, expanding product lines like Fabuloso, increasing advertising, and potentially divesting non-core personal care brands.
- Despite the revised target, the new $95 price target suggests a potential upside of approximately 8.61% from the stock's recent trading price of $87.47.
Colgate-Palmolive is a major global company in the consumer staples sector, focusing on oral care, personal care, and home care products. On September 21, 2026, investment firm Piper Sandler lowered its price target for Colgate-Palmolive to $95 from $98. A price target is an analyst's estimate of a stock's future value.
The revised target reflects recent challenges in Colgate-Palmolive's North America business. As highlighted by Zacks Investment Research, the second quarter of 2026 was difficult due to soft consumer demand, increased competition, and retailers reducing their inventory. This resulted in product consumption falling by 1% and shipments dropping by about 3%.
In response, Colgate-Palmolive is implementing a growth strategy to revive growth in the region. The company is focusing on premium innovation, particularly in its toothpaste category, and expanding its Fabuloso product line. It also plans to increase advertising spending and use targeted pricing to help regain market share from competitors.
Adding to its strategic shifts, Colgate-Palmolive is reportedly exploring the sale of several personal care brands. As reported by Reuters, these brands include Softsoap, Irish Spring, and Speed Stick. This move suggests a plan to focus on its core, higher-growth product lines, a topic also covered in a presentation at a Barclays conference.
At the time of the analyst's report, Colgate-Palmolive's stock price was $87.47, giving the new $95 target a potential upside of approximately 8.61%. Colgate-Palmolive has a market capitalization of around $69.99 billion, with its stock trading in a 52-week range between $74.55 and $99.33.
