TD Cowen has downgraded Church & Dwight from ‘Buy’ to ‘Hold’, revising the price target to \$100. The move follows a downward adjustment in the company’s 2025 growth guidance, which has raised concerns about the pace of future expansion and alignment with premium valuation multiples.
⚠️ A lack of positive sales catalysts, particularly in the U.S. market, has been noted. With limited exposure to high-growth international regions, CHD may struggle to accelerate revenue in the near term. The firm’s consistent reliance on core legacy brands without broader international diversification is now being viewed more critically in the context of industry trends.
💸 Despite these headwinds, Church & Dwight maintains its appeal among dividend-focused investors. The company pays a quarterly dividend of \$0.295 per share, equating to a forward yield of approximately 1.24%. With 29 consecutive years of dividend increases and a conservative payout ratio near 49%, CHD continues to reward long-term shareholders even amid a cautious outlook.
📉 The downgrade reflects a combination of slowing business momentum and valuation stretch. While not a sell call, it signals that upside potential may be limited in the short term relative to other opportunities in the consumer staples space.