Analysts Maintain Confidence in Church & Dwight Despite Stock Weakness

Shares of consumer products maker Church & Dwight continue to draw scrutiny from Wall Street following a price target reduction by one research firm. The stock's significant decline year-to-date contrasts with the sustained bullish ratings from several analysts, presenting a puzzle for investors.

On December 4, Argus Research adjusted its price target downward to $102 from $110, while reaffirming its "Buy" recommendation. The firm's analysts cited the company's focus on "Power Brands" and an estimated annual earnings growth rate of 8% as key supportive factors.

Current analyst ratings for Church & Dwight reveal a spectrum of perspectives:

• Bank of America: $105 target, Buy rating
• Wells Fargo: $100 target, Overweight rating
• UBS: $98 target, Neutral rating
• Barclays: $82 target, Underweight rating

The consensus price target stands at approximately $99.18, with the majority of current ratings clustered in the "Hold" category. The equity is currently trading near $84.21, reflecting a loss of roughly 20.2% for 2025 so far.

Should investors sell immediately? Or is it worth buying Church, Dwight?

Operational Strength Meets Premium Valuation

The company's fundamental picture appears mixed. With a price-to-earnings (P/E) ratio of about 26.4, the stock commands a substantial premium compared to the industry average of 17.5. This suggests the market continues to value it highly even after the recent price depreciation. Intriguingly, certain discounted cash flow models indicate the intrinsic value could be more than 30% above the present share price.

This premium valuation is backed by solid operational performance, as demonstrated in the Q3 2025 report:

• Earnings Per Share (EPS): $0.81 (surpassing expectations of $0.73)
• Revenue: $1.59 billion (exceeding forecasts of $1.54 billion)
• Full-Year 2025 Guidance: EPS projected around $3.49

Governance Policy Update

In a separate announcement also dated December 4, Church & Dwight modified its corporate governance guidelines. The board of directors eliminated term limits for directors but maintained the mandatory retirement age of 75. The company stated this change aligns its policies with the majority of S&P 500 corporations.

Investors are now looking ahead to the release of the final 2025 annual results as the next major catalyst for the stock. In the interim, the market must balance the robust operational results against the elevated valuation metrics and the prevailing downward trend in the share price.