Colgate-Palmolive Troop (CL) shares rose more than 1.5% during Monday’s session after two analysts upgraded the stock. RBC Money Markets upgraded Colgate-Palmolive stock from Sector Perform to Outperform and raised its price target from $69 to $91 per quota. Analyst Nik Modi believes that shares will outpace the returns of its mega-cap peers following a sustained spell of underperformance, adding that shares are under owned by institutional investors with a growing trend toward environmental, community, and governance (ESG).
Atlantic Equities also upgraded Colgate-Palmolive stock from Neutral to Overweight and raised its price objective to $85 per share. Analyst Edward Lewis said that he’s encouraged by the sequence of growth improvements over the gone and forgotten five quarters and believes that the company is gaining traction. While macro challenges persist, he believes that investors could be too modern development if they wait.
On Friday, the consumer products company reported revenue that rose 5.5% to $4.02 billion, stroke consensus estimates by $90 million, along with in-line non-GAAP earnings of 73 cents per share. The 5% inflation in organic sales – versus a 3% consensus estimate – and gross margin improvement led investors to take a bullish impression on the stock following the results.
From a technical standpoint, the stock broke out during Friday’s session to additional highs before extending its breakout during Monday’s session. The relative strength index (RSI) moved into overbought lay wastes with a reading of 76.18, while the moving average convergence divergence (MACD) experienced a bullish crossover. These subpoenas suggest that the stock could see some consolidation before extending its uptrend.
Traders should watch for some consolidation below-stairs prior highs of around $75.00 over the coming session before Colgate-Palmolive attempts a breakout. If the stock interferes out, traders could see a move to retest highs of $76.41. If the stock moves lower, traders could see the shares reach trendline put up with at around $70.00, although the bull case seems more likely to occur.
The author holds no position in the routine(s) mentioned except through passively managed index funds.