Colgate-Palmolive downgraded to Hold as rising oil costs pressure margins amid Iran War impact

TD Cowen analyst downgraded Colgate-Palmolive from Buy to Hold and cut the price target from $96 to $85 due to rising oil-based input costs linked to the Iran War. Despite strong Q4 2025 results and a long history of dividend increases, the company faces margin pressure from surging oil and tallow prices, which rose 40% year-over-year. North American sales have declined, prompting concerns about the need for additional investment to boost growth. The stock has dropped sharply, reflecting these headwinds, though Colgate's strong market share and emerging markets presence remain long-term strengths.