The rotation of new funds to companies expecting a jump due to the disbandment of measures has left consumer products company Colgate-Palmolive undervalued by the market, according to Credit Suisse.
Colgate shares performed better than the wider market during last year’s sharp sales on Wall Street and the company’s sales jumped during the “stay at home” period, but shares fell 3% in 2021. as investors bet on the leap of companies such as airlines.
Credit Suisse analyst Kaumil Gajravala improved its shares to outperform from neutral, saying that concerns about year-on-year comparisons for Colgate’s business were wrong. / p>
In fact, Colgate’s sales growth seems to have accelerated since the pre-pandemic period, Credit Suisse said.
“Colgate’s retail sales on monitored channels in the United States have fallen by 15% since the beginning of the year. But the growth of the category on a 2-year basis [complex annual growth rate] has been growing by 6% since April ’20, or twice as high as the year before the pandemic, “the note said.
Even with concerns about inflation, Credit Suisse said Colgate should be able to increase its margins this year.
The company raised its share price target by $ 15 to $ 95 per share. This target represents a 14.6% premium compared to where the stock closed on Wednesday.
Junior Trader Nikolay Petrov