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A positive long-term view for Colgate-Palmolive.

* Colgate-Palmolive may be going through a painful restructuring program, but that didn't stop Marquis Investment Research from issuing a "buy" rating on the stock late last month.

Analyst Charles Georgas set his price target for Colgate at $59 (the stock was at $50 at press time), citing the company's "proactive" fourth-quarter restructuring plans and its valuation, among other factors.

"With 75% of worldwide sales outside the U.S., the company is wellestablished in high-growth developing markets," said Mr. Georgas in a note to clients. "We anticipate long-term growth in earnings per share in low double-digits and strong growth in key brands."

Mr. Georgas insisted that the stock's current valuation doesn't reflect Colgate's sustainable growth rate and level of risk.

"Colgate has outperformed the industry, sector, S&P 500 and its chief competitor (P&G), in terms of gross margin, operating margin and net margin based on a five-year average," said Mr. Georgas. "Colgate will continue to expand its margins as the company focuses on more profitable businesses as a result of the recent restructuring."
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Title Annotation:As We Go To Press
Publication:Household & Personal Products Industry
Date:Jan 1, 2005
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