Can Colgate-Palmolive Company (CL) Hit its Objectives in 2013?

Probably the most exciting developments at CL are the new products at Hills which should lead to improved performance going forward. It is a great sector of the economy to be exposed to and offers strong long term growth prospects.

Where Next for Colgate?

The stock certainly isn’t cheap now, and I would argue it is fairly valued for its revenue and earnings growth prospects outlined above. The question is whether it will hit them or not. If so then I think the potential is for Colgate’s share price to ‘do its earnings.’

It will require success with the ongoing product innovation within developed markets and skillful negotiation of the increasing competitive pressures within emerging markets. Alongside this, the guidance contains some assumptions over the restructuring program and success with Hills. The recent history of CL suggests it will achieve these things, but there is little margin for error here and the evaluation doesn’t look compelling.

The article Can This Company Hit its Objectives in 2013? originally appeared on Fool.com and is written by Lee Samaha.

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