Home goods maker Colgate-Palmolive (NYSE:) got a boost on Sunday, as Deutsche Bank (DE:) offered some positive commentary on the stock.

Colgate-Palmolive is now even more attractive because of this shift. I am bullish overall on Colgate-Palmolive because of the combination of its past performance and an unexpected extra feature.

Colgate-Palmolive has had a relatively quiet year so far. Colgate-Palmolive has maintained a stable share price between $76-$84 for most of the year.

Although there were a few exceptions, the price never soared above $84, and these rarely lasted for long. The price was kept below $76 by a sharp dip in February/earlyMarch, but it did not drop much to $74 at the close. (See Colgate-Palmolive stock charts on TipRanks)

Deutsche Bank analysts noted that many of Colgate-Palmolive’s troubles are already priced into the stock. This holds true especially for inflation which is becoming a more serious concern in the global economy.

Analysts pointed out that most investors focus on costs at companies like Colgate Palmolive. Perhaps too tightly, Deutsche Bank’s Steve Powers noted. Powers added that Colgate-Palmolive has not been focusing as much on growth as it should.

Deutsche Bank increased its recommendation to a Buy (from a Hold) and also raised its price target from $84 per stock to $86 per.

Wall Street’s Take

Wall Street consensus analysis calls Colgate-Palmolive a Hold. This assessment has varied several times during the last year. Colgate-Palmolive, which was previously a Moderate buy on September 2, changed to a Hold in April.

Two analysts have given 12-month price targets for Colgate-Palmolive over the past three months. Seven others consider it to be a Buy.

Colgate-Palmolive has an average price target that is within a small range. At $88, the current price target, which is 14.9% upside, is the average.

An Unexpected Income Champ

The overwhelming majority of analysts right now call Colgate-Palmolive a Hold, and with good reason.

Colgate Palmolive’s potential to become a leader among growth stocks would be like trying to find the Kentucky Derby winner. Overall, there has been little movement in shares over the past year. This is not a good sign for those looking to grow their wealth. Colgate-Palmolive might be the right choice for anyone looking for an income stock that is safe and secure.

Colgate-Palmolive has a fascinating upward trend in its dividend history. For the past five years, Colgate-Palmolive has increased its dividend each year. It was not a huge increase, but it is a good sign.

A company who is increasing its dividend by just cents per share after a pandemic has to be welcomed, considering that it was the first time in history that this happened.

Concluding Views

There’s no doubt Colgate-Palmolive benefited from the pandemic, and the stock-up frenzy that followed. As most of the globe re-opens, it’s obvious that this benefit is no longer there. But the demand for toothpaste and soaps will not go away.

Colgate-Palmolive stock should remain attractive because of the constant demand. Its regular — and regularly raised — dividend only sweetens an already attractive pot.

Disclosure: Steve Anderson had no position at the time this article was published.

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