Colgate-Palmolive (CL) is expected to continue benefiting from emerging markets growth as international strength offsets ongoing weakness in North America, RBC Capital Markets said in a Wednesday note.

The investment firm said it expects Colgate-Palmolive to report an in-line Q2 and reiterate its full-year sales and earnings guidance.

RBC also expects continued margin pressure this year but said Colgate's cost assumptions, including oil at about $110 per barrel, provide greater flexibility than some peers if input costs continue to rise.

The firm said management remains confident in sustaining its long-term 3% to 5% organic sales growth algorithm despite tariff, energy and consumer spending uncertainty.

RBC Capital Markets maintained its outperform rating on Colgate-Palmolive, with a $102 price target.

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