In advance of Church & Dwight Co. Inc.'s upcoming financial disclosure, UBS has maintained its Neutral analyst rating and price target of $92 on the company's stock (NYSE: CHD). The company is scheduled to announce its fourth-quarter 2025 performance results on January 30, prior to market opening, immediately followed by its annual Investor Day event.
UBS projects a quarterly earnings per share (EPS) figure of $0.84, marginally surpassing both the general market consensus and Church & Dwight's own forecast of $0.83. Despite this slight upside, UBS anticipates less robust gains compared to the company's historical performance metrics, attributing this outlook to a "challenging operating environment" faced by the sector.
The investment firm's analysis suggests that investor attention will focus primarily on the initial forward guidance Church & Dwight provides. UBS cautions that this guidance may fall short of the firm's aspirational Evergreen targets, influenced by subdued industry demand and the financial impacts associated with the divestiture of the vitamin, mineral, and supplement (VMS) business.
UBS further comments on the ongoing debate surrounding Church & Dwight's stock within its coverage universe, noting a divided market perspective. Supporters emphasize favorable sequential comparisons anticipated in the first quarter of 2026 and the potential for organic growth surpassing average rates. Conversely, skeptics express concerns that the market's optimism may be excessive and that current valuation levels offer limited margin for error.
Ultimately, UBS balances these viewpoints by acknowledging a fundamentally positive outlook for the company's early 2026 operations, while also indicating that such positive expectations appear largely accounted for in present valuations.
In a related update, Church & Dwight recently reported stronger-than-expected results for the third quarter of 2025. The company delivered adjusted EPS of $0.81, exceeding the anticipated $0.74, and posted revenues of $1.59 billion against estimates of $1.53 billion. Additionally, the firm announced an agreement to sell its VitaFusion and L’il Critters vitamin brands to Piping Rock Health Products, with the transaction expected to finalize by the end of 2025. This move follows a strategic review focusing on the firm’s vitamin, minerals, and supplement segment, which is projected to represent less than 5% of 2025 net sales.
Analyst reactions to these developments have been varied. Raymond James upgraded Church & Dwight’s rating from Market Perform to Outperform, assigning a $100 price target. Similarly, Jefferies raised its rating from Hold to Buy, lifting its price target to $102, citing a reassessment of the sector’s valuation. Meanwhile, Evercore ISI sustained an In Line rating with a $101 price target, describing the fourth quarter as a transitional phase for the company. Collectively, these viewpoints highlight a mix of strategic repositioning and commendable earnings momentum for Church & Dwight.