-- Church & Dwight (CHD) posted "impressive" Q1 results as robust volume supported an increase in its organic sales of household and personal products, RBC Capital Markets said Monday in a report.
Organic sales rose 5%, supported by 5.3% higher volume and easier comparisons with last year's retailer inventory cuts, the report said.
While costs are a concern in the sector, Church & Dwight's management plans to boost productivity to offset headwinds and doesn't intend to increase prices given consumers' tight budgets, the report said.
"We view this as the right call to maintain topline momentum in this environment, and it speaks to their value portfolio/innovation strength," RBC said.
Church & Dwight, the maker Arm & Hammer and OxiClean, reaffirmed its guidance for key metrics even amid the higher cost outlook following the conflict in the Middle East, the report said.
RBC increased its price target on Church & Dwight stock to $114 from $112 and reaffirmed its outperform rating.
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