Colgate-Palmolive Company (NYSE:CL) is one of the most profitable consumer stocks to buy now. UBS lowered its price target on Colgate-Palmolive (NYSE: CL) to $106 from $109 while maintaining a Buy rating, citing valuation discipline following the stock’s steady run in recent months. At the current price of $86.80, the revised target still implies an upside potential of roughly 22%.
An array of toothpaste, toothbrushes, and mouthwashes on a bright background, highlighting the company’s oral care products.
The firm continues to see strength in Colgate’s underlying fundamentals, particularly its strong pricing execution across global markets and steady demand for essential personal care and household products. UBS analysts noted that while foreign exchange and cost headwinds remain part of the equation, margin recovery efforts and disciplined brand investments are likely to support earnings growth through the back half of the year.
Colgate has seen consistent performance across its oral care and pet nutrition segments, with emerging markets showing signs of improving volumes. The updated target reflects a more balanced outlook as shares approach levels UBS considers closer to fair value, rather than a change in conviction about the company’s prospects.
Investors will be watching Colgate’s next earnings update for clarity on input cost trends and competitive dynamics, particularly as pricing begins to normalize and volume growth comes back into focus.
While we acknowledge the potential of CL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
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