Piper Sandler sees Colgate (CL) reaccelerating in 2026, raises price target

Colgate-Palmolive Company (NYSE:CL) is one of the 13 Best Consumer Staples Dividend Stocks to Invest in Now.

On January 7, Piper Sandler upgraded Colgate-Palmolive Company (NYSE:CL) from neutral to overweight and raised its price target from $82 to $88. The company said the company experienced continued weakness in the fourth quarter, but that weakness was already reflected in the stock. Piper believes Colgate’s growth can accelerate in 2026. The analyst also highlighted early signs of improvement in emerging markets. If this momentum continues, Colgate’s current valuation looks attractive, Piper said. The company also likes Colgate’s reduced dependence on the “strained United States” given its exposure to emerging economies.

Last October, Colgate lowered its annual sales forecast, signaling that growing economic uncertainty was beginning to dampen spending on more expensive products. This decline has been evident even in everyday categories like oral and personal care. The company raised prices in most markets to offset the impact of U.S. tariffs, a move that pushed some consumers toward cheaper options. Prices rose 2.3% in the third quarter, while volumes fell 1.9% from a year earlier.

CEO Noel Wallace said on the conference call after the results that consumers remained relatively weak in North America. He noted that discount shopping is up, Hispanic traffic is still down, and U.S. household products’ performance in September was weaker than expected and weaker than previous months. Colgate-Palmolive Company (NYSE: CL) also reported pressure in Canada related to the “Buy Canadian” movement, as well as weaker demand in Colombia, Central America and India. The company continues to expect approximately $75 million in tariff-related costs. It imports raw materials such as vitamins and amino acids and manufactures toothpaste for the US market in Mexico.

Colgate-Palmolive Company (NYSE: CL) is positioned as a growth company focused on oral care, personal care, home care and pet nutrition.

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