Colgate-Palmolive Tests Key Support After "Sell" Rating

Most analysts are skeptical of CL stock

Oct 16, 2019 at 10:02 AM
facebook twitter linkedin


Berenberg resumed coverage on Colgate-Palmolive Company (NYSE:CL) with a "sell" rating and $58 price target -- a 15.2% discount to last night's close, and the lowest on Wall Street. Analyst Fulvio Cazzol said CL is "tackling cavities that are too deep to fix," and questioned the consumer product specialist's ability to sustain growth.

In reaction, CL is down 0.6% to trade at $68 -- a level that's served as a floor for the stock since a late-April bull gap. Just below here is Colgate-Palmolive's 320-day moving average, which hasn't been breached on a daily closing basis since March 25. Year-to-date, the shares are still up 14%.

Most analysts share in Berenberg's skepticism, with 10 of 14 maintaining a lukewarm "hold" rating. Plus, the average 12-month price target of $73.18 represents expected upside of just 7% to the equity's current perch.

Short sellers have been ramping up their exposure to the security, too. Short interest spiked 20.7% in the most recent reporting period to 12.85 million shares -- the most since July 2018. The bearish bandwagon is far from full, though, considering these bets account for just 1.5% of CL stock's available float.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners