Piper Sandler Rates Church & Dwight as Overweight

Piper Sandler has initiated coverage of Church & Dwight with an Overweight recommendation, suggesting a possible 5.10% upside. However, projected annual revenue is expected to decrease by 2.52%, indicating some challenges ahead for the company.

Date: 25-09-2024

AI Rating: 5

Piper Sandler's Overweight recommendation for Church & Dwight (NYSE:CHD) is a notable positive signal. The average price target of $108.40/share represents a 5.10% upside from the latest closing price of $103.14/share.

However, the projected annual revenue for Church & Dwight is expected to be $5,847MM, reflecting a decrease of 2.52%. This decline in revenue could potentially affect investor sentiment negatively, as revenue growth is often a key indicator of a company's health.

In terms of Earnings Per Share (EPS), the projected annual non-GAAP EPS stands at 3.41. This figure gives investors insight into the company's profitability. If EPS growth is anticipated, it could cushion the impact of declining revenues on the stock price.

Investor sentiment appears mixed as the report notes a bearish outlook indicated by a put/call ratio of 1.86. This suggests that some investors may be hedging their positions against potential downturns in the stock price.

Institutional ownership has seen a modest increase in the number of funds or institutions reporting positions, which went up by 2.16% in the last quarter. However, various institutions have reduced their portfolio allocations, reflected in the ownership changes among key shareholders.

The overall outlook for Church & Dwight appears cautious. The positive recommendation from Piper Sandler is undercut by declining revenue projections and mixed actions from funds which could weigh on the stock price in the near term.

Stocks: CHD