Colgate-Palmolive (CL) is "well-positioned" versus peers in a difficult consumer packaged goods environment, Morgan Stanley said in a note Thursday.

The company's organic sales growth is likely to accelerate "modestly above peer levels" in 2026 after a "difficult 2025," supporting by easier comparisons, strength in emerging markets, improving trends in the pet segment and share gains in core oral care, Morgan Stanley said, adding it expects organic sales growth rebounding to about 3% in H2 2026 from flat growth in Q3 2025, which it views as a "potential catalyst" for the stock.

The firm also cited strong earnings visibility, supported by prior marketing reinvestment, "productivity initiatives" under the company's three-year "Strategic Growth and Productivity Program," favorable foreign exchange and moderate commodity costs. It also sees earnings per share growth of about 6% in 2026, slightly above consensus expectations, according to the report.

Morgan Stanley has an overweight rating on Colgate-Palmolive with a price target of $87, and moved the company as its "Top Pick" in the household and personal care sector.

Shares of the company were up more than 3% in recent Thursday trading.

Price: 79.86, Change: +2.77, Percent Change: +3.59