Evercore ISI has increased its price target on Colgate-Palmolive Company (NYSE:CL) to $100.00 from $94.00 and retained an Outperform rating, positioning the revised target roughly 11% above the stock's current price of $90.29. The shares have shown notable strength year-to-date, up nearly 15%.
The brokerage attributed the more upbeat valuation to Colgate's recent rebound in momentum and market-share improvements, particularly across its oral care business and in the Hill's pet nutrition portfolio. Evercore highlighted currency tailwinds in regions where Colgate holds leading positions - Latin America and Europe - as providing additional flexibility to fund reinvestment programs.
Colgate's profitability underpins that reinvestment capacity. The company reported a gross profit margin of 60.11%, which Evercore sees as creating room to support growth initiatives. That margin backdrop, combined with stabilizing top-line dynamics, is central to the firm's decision to lift the price target.
On the revenue-growth front, Colgate's adjusted organic sales growth came in at 3%, which Evercore characterized as the low end of the company's algorithm. The firm noted that Colgate's 2026 outlook - a range of 1% to 4% growth - appears to reflect both expected market volatility and conservatism amid sluggish end-market demand.
Evercore pointed to a reacceleration of Hill's branded products into mid-single-digit growth and improving trends across core international markets as components that provide operating headroom. That headroom, in Evercore's assessment, allows Colgate to step up structural reinvestment in the U.S., where the market remains intensely competitive and is only beginning to stabilize.
Advertising reinvestment is a key lever. Colgate continues to outpace peers in ad spend, with reinvestment rising another 5% in the fourth quarter. The additional marketing investment supports premiumization initiatives and global rollouts in oral care, including the Purple toothpaste campaign cited by analysts as an example of premium product expansion.
Financial results for the fourth quarter of 2025 reinforced the positive analyst view. Colgate reported adjusted earnings per share of $0.95, topping the consensus forecast of $0.91. Revenue for the quarter was $5.23 billion, ahead of the expected $5.12 billion. These results were singled out by market participants as evidence of the company's resilient performance.
Other broker actions followed Colgate's quarterly disclosure and 2026 guidance. TD Cowen raised its price target to $96 from $86 and kept a Buy rating, citing the modest fourth-quarter earnings beat and guidance that aligns with bullish expectations for mid-single-digit EPS growth in 2026. Wells Fargo also raised its target to $94 from $86 while maintaining an Equal Weight rating. Both moves reflect a more constructive analyst stance grounded in the company's recent earnings and forward-looking projections.
Valuation metrics show investors are paying a premium for Colgate's stability and growth potential: InvestingPro data indicates the stock trades at a price-to-earnings ratio of 34.33. That multiple reflects market willingness to pay for the company's combination of market leadership, margin strength, and potential for reinvestment-driven growth.
Analysis takeaway: Evercore's target increase and peer upward revisions underline a consensus shift toward a more positive view of Colgate's near-term prospects, driven by product and market-specific momentum, supportive currency dynamics, and the company's capacity to convert margin into targeted reinvestment.