Church & Dwight (CHD) Gets a Hold Rating from Wells Fargo

By Jason Carr

Wells Fargo analyst Bonnie Herzog maintained a Hold rating on Church & Dwight (CHDResearch Report) today and set a price target of $70. The company’s shares opened today at $74.66, close to its 52-week high of $74.99.

Herzog commented:

“We believe guidance for both organic sales growth (unchanged at +3.5%) and gross margin continues to look conservative, but expect any upside to be reinvested with little flow- through to EPS. CHD delivered in Q1, but shares barely budged (CHD +1% vs. S&P flat), as a great quarter has clearly become what’s expected. CHD is trading at a 28x CY20E P/E multiple, a +53% premium to Staples (vs. 3 and 5-year historical averages of ~+29%) and we see few catalysts to drive valuation higher from here. Therefore we maintain our Market Perform rating.”

According to, Herzog is a 4-star analyst with an average return of 4.7% and a 66.4% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, The Estée Lauder Companies Inc, and Constellation Brands Inc.

Church & Dwight has an analyst consensus of Hold, with a price target consensus of $67.92.

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Based on Church & Dwight’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $143 million. In comparison, last year the company earned revenue of $1.01 billion and had a net profit of $158 million.

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Church & Dwight Co., Inc. engages in the development, manufacture, and market of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, and Specialty Products.