The shares of Colgate-Palmolive Company (NYSE: CL) are up 0.9% at $76.94 at last check, after the company received an upgrade from Deutsche Bank to "buy" from "hold," as well as a price-target hike to $86 from $84. The analyst noted the company's "growth mindset," which is the result of a three-year corporate culture revamp, adding CL should ultimately overcome near-term cost challenges.
More analysts may follow in Deutsche Bank's footsteps. Of the 11 in question, nine still carry a tepid "hold" or worse rating on CL, while only two call it a "strong-buy." Should some of this negative sentiment begin to unwind, the security could go even higher.
Colgate-Palmolive stock has trended lower on the charts since its rally to the $84 level in July. Overhead pressure at the 20-day moving average has kept a tight lid on the equity, which experienced a volatile last 12 months. Year-to-date, CL remains down 10.5%.
An unwinding of pessimism in the options may boost the shares, too. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CL's 10-day put/call volume ratio of 2.08 sits higher than 91% of readings in the past year. This means puts have been getting picked up at a quicker-than-usual clip in the last two weeks.
Options seem like a solid choice to weigh in on CL's next move. The equity's Schaeffer's Volatility Index (SVI) of 16% stands higher than 21% of readings from the past year. In other words, the options market is pricing in low volatility expectations for the security right now.
Comments
Log in or sign up to join the conversation.