Colgate-Palmolive "overweight," target price reduced - update

05/01/08 - Lehman Brothers

NEW YORK, May 1 (newratings.com) - Analyst Lauren R Lieberman of Lehman Brothers maintains his "overweight" rating on Colgate-Palmolive Co (CL), while raising his estimates for the company. The target price has been reduced from $81 to $79.

In a research note published this morning, the analyst mentions that the company has posted its 1Q08 results ahead of the estimates and the consensus. Although Colgate-Palmolive’s gross margins contracted by 10bps in the quarter, the company has the potential to improve them via several measures, including restructuring benefits and the Colgate Business Planning initiative, the analyst says. The EPS estimate for the next year has been raised from $4.35 to $4.36.