This consumer products giant is a buy after a recent pullback, RBC says
RBC Capital Markets thinks shares of Church & Dwight could see a rebound as tariff and consumer woes appear to have eased in recent weeks. The company also has a new growth engine with its recent acquisition, according to the firm. Analyst Nik Modi upgraded the consumer products company to outperform from sector perform and lifted his price target by $14 to $114. His new target suggests that the stock can jump about 16% from its latest close. Church & Dwight, which owns brands including Arm & Hammer and Nair, declined 7% on May 1 after the company issued lackluster second-quarter earnings guidance. Year to date, shares have lost 6%. But Modi believes the stock is now trading at a "good entry point" after this pullback, given it has also underperformed the Consumer Staples Select Sector SPDR Fund (XLP) in 2025. "CHD shares have underperformed following a soft Q1 print impacted by destocking, slower category growth, and the impact of tariffs," Modi said. But "after spending time with Church & Dwight management (CEO/ new CFO), we have renewed confidence that the current guide adequately reflects the challenges of the current environment." The analyst is also confident that Church & Dwight will continue to gain market share across most of its portfolio for the rest of the year, highlighting that the company's year-over-year volume share in laundry detergent, mouthwash and skin care has increased year to date. CHD 1Y mountain Church & Dwight stock performance over the past year. Additionally, Modi is optimistic that Church & Dwight's acquisition of hand sanitizer brand Touchland will usher in greater distribution opportunities as well as potential opportunity to drive greater revenue synergy with Sephora. "We are also bullish on the acquisition of Touchland given its product efficacy, differentiation, distribution opportunities and loyal consumer base," he said in a note to clients. "We see this acquisition as more akin to recent acquisitions Hero and TheraBreath and less like acquisitions like Flawless or Vitafusion." Analysts in general aren't fully on board with Church & Dwight. Of the 24 analysts that cover the name, only eight rate it a strong buy or buy, while 11 have a hold rating. Another five rate it as underperform or sell, per LSEG.
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