Church & Dwight (CHD) Gets an Upgrade from Rothschild & Co Redburn Thanks to More Attractive Valuation

Church & Dwight (CHD) Gets an Upgrade from Rothschild & Co Redburn Thanks to More Attractive Valuation
Church & Dwight (CHD) Gets an Upgrade from Rothschild & Co Redburn Thanks to More Attractive Valuation

Church & Dwight Co., Inc. (NYSE:CHD) is included among the 16 Best Dividend Stocks with Growing Payouts.

Church & Dwight (CHD) Gets an Upgrade from Rothschild & Co Redburn Thanks to More Attractive Valuation

On February 13, Rothschild & Co Redburn analyst Edward Lewis upgraded Church & Dwight Co., Inc. (NYSE:CHD) to Neutral from Sell. The analyst also raised his price target to $91 from $81 on the stock. He explained that the company’s previous cautious view was based on expectations that growth would slow, which did not appear to be fully reflected in the stock’s premium valuation at the time. Now that the valuation is more reasonable, the company said it had become more comfortable with the stock.

Previously, on Jan. 30, Church & Dwight reported quarterly results that beat Wall Street expectations. The company benefited from steady demand for both affordable and premium household products, including laundry detergents and personal care items. This steady demand helped support profits even as consumer conditions remained uneven.

The company also said it expects its gross margin to expand by about 100 basis points in 2026 compared to last year. That outlook reflects ongoing efforts to improve efficiency and strengthen profitability. Consumer goods companies across the United States have been adapting to a more cautious consumer environment. Inflation remains high and economic uncertainty has made buyers more selective. In response, companies like Church & Dwight have focused on product innovation, increased promotions and more aggressive marketing to maintain sales momentum.

Over the past year, Church & Dwight overhauled its business. It exited several slower-growing areas, including dietary supplements, Flawless grooming tools and Waterpik shower head products. These moves allowed the company to focus more on categories with greater growth potential, particularly those that offer both value and premium options.

The company reported adjusted earnings of 86 cents per share for the fourth quarter, above analysts’ estimate of 84 cents per share, according to LSEG data. CEO Rick Dierker said the company’s balanced mix of value and premium products, along with disciplined operations, helped it gain market share in several categories. This progress occurred even as the overall economic and consumer environment remained mixed.

Church & Dwight Co., Inc. (NYSE:CHD) develops, manufactures and sells a range of home and personal care products. It also operates in specialty areas related to animal and food production, as well as chemicals and cleaning products.

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