Colgate-Palmolive (CL) is poised to return to 3% to 4% organic sales growth after a rebound to about 3.5% in Q1, with momentum expected to build in H2, Morgan Stanley said Sunday in a report.

Colgate-Palmolive's difficult 2025 is "in the rear-view mirror," with organic sales growth rebounding to 3% in Q4 from 1.2% in Q3 and improving into early 2026, supported by "solid pricing power," 45% exposure to faster-growing emerging markets and a likely bottom in North America, the report said.

Further improvement in organic sales growth is expected in the near term as the drag from private-label discontinuations fades and North America stabilizes, the report said.

Colgate-Palmolive on Friday reported Q1 adjusted EPS of $0.97, beating estimates, with stronger-than-expected 2.9% organic sales growth, while maintaining its 2026 outlook, despite $300 million in cost pressures expected to be partly offset by savings, the report said.

Morgan Stanley raised its price target on Colgate-Palmolive stock to $100 from $95 and kept its overweight rating, naming the company as a top pick in the household and personal care sector.

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