TD Cowen Ups Colgate-Palmolive to Outperform, Cites Pricing Power and Margin Resilience

TD Cowen upgraded Colgate-Palmolive Company (CL) to Outperform, citing strong pricing power, resilient margins, and disciplined cost management. The firm highlights the company’s 5.2% organic revenue growth in Q4 2025 and 12.1% adjusted EBITDA margin, signaling sustained operational strength.

TD Cowen has issued a bullish note on Colgate-Palmolive Company (CL), upgrading the stock to Outperform following a comprehensive review of its 2025 performance and forward outlook. The firm points to the company’s ability to maintain pricing power across key categories, including oral care, personal care, and household products, despite ongoing inflationary pressures. CL reported a 5.2% increase in organic revenue during the fourth quarter of 2025, driven by volume gains in emerging markets and premium product mix expansion. The analysis underscores Colgate-Palmolive’s margin resilience, with an adjusted EBITDA margin of 12.1% in Q4 2025, up from 11.4% in the same period the prior year. This improvement is attributed to ongoing cost optimization initiatives, including supply chain efficiency and reduced SG&A expenses. Capital allocation remains a focus, with the company returning $1.8 billion to shareholders via dividends and buybacks in 2025. TD Cowen forecasts CL’s organic revenue growth to stabilize at 4.5% to 5.0% annually through 2027, supported by product innovation and international market penetration. The firm also highlights a 27% increase in digital sales year-over-year, reflecting stronger e-commerce adoption. These trends, combined with a conservative debt profile and a current dividend yield of 2.9%, enhance the stock’s appeal in a volatile macro environment.