Colgate-Palmolive made headlines last month when several counterfeit tubes of toothpaste were found to contain diethylene glycol, a sweet-tasting, but potentially dangerous chemical.
Despite the bad PR, Morgan Stanley upgraded Colgate to Overweight, citing cost savings, strong operating fundamentals and the weak dollar as providing a potential upside to earnings estimates.
Meanwhile, Zacks senior consumer goods analyst Steven Ralston, CFA reiterated his Hold rating for shares of Colgate-Palmolive. He noted that Colgate has had a stellar long-term growth record, as well as a history of tight financial controls and new product innovations.
Despite Toothpaste Woes, Analysts Like Colgate
Published July 12, 2007
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