Wells Fargo on Monday boosted its price target for Colgate-Palmolive Company (NYSE:CL) to $94.00 from $86.00, yet kept an Equal Weight rating on the consumer products company. The revised target sits slightly above the stock's then-current trading price of $90.29, and follows a year-to-date share gain of about 15% for Colgate.
The higher target reflects Wells Fargo's decision to apply a 23x multiple to its 2027 estimated earnings per share of $4.08. That compares with the prior target, which was based on a 21.5x multiple applied to an estimated EPS of $4.03. Wells Fargo observed that the new multiple aligns with Colgate's historical trading band of roughly 22-24x, which the research team deems appropriate given the company's slower category growth but solid earnings visibility.
Market valuation metrics highlight a divergence between the firm's target multiples and the stock's current price-to-earnings level. Colgate is trading at a P/E of 34.33, with InvestingPro data indicating the company is at a relatively high earnings multiple versus broader comparisons.
Wells Fargo also noted that the $94 target implies a roughly 5% premium to Procter & Gamble's 22x multiple. The research house characterized that premium as consistent with Colgate's historical mid-single-digit advantage and said it is justified by marginally better clarity on top-line expansion and earnings prospects, in part aided by foreign exchange dynamics.
Despite the upward revision in the target price, Wells Fargo left its rating unchanged at Equal Weight, stating that while Colgate has made measurable progress, other emerging-market-exposed peers may offer potentially stronger growth at more attractive valuations.
Supporting investor confidence in Colgate's nearer-term performance, the company reported fourth-quarter 2025 results that exceeded consensus. Colgate posted earnings per share of $0.95 versus a forecast of $0.91, and generated revenue of $5.23 billion compared with projected revenue of $5.12 billion. The better-than-expected quarter has been received positively by investors.
In reaction to those quarterly results, TD Cowen raised its price target for Colgate-Palmolive to $96 from $86 and maintained a Buy rating. TD Cowen pointed to the modest earnings beat and 2026 guidance that it says is consistent with an outlook for mid-single-digit EPS growth.
Taken together, the analyst adjustments and the quarterly beat suggest growing optimism among some market participants regarding Colgate's earnings trajectory, even as at least one major broker retains a neutral stance relative to the stock's peers and current valuation.
Contextual note: This report focuses on the firms' publicly stated price-target revisions, rating stances, valuation multiples, and the company's reported quarterly results. It does not infer outcomes beyond the language used by the research teams or the company-reported figures.