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Credit Suisse upgrades Colgate-Palmolive, says reopening rotation has made stock cheap

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Colgate-Palmolive's Colgate Total brand toothpaste
Andrew Harrer | Bloomberg | Getty Images

The rotation into reopening stocks has left consumer products company Colgate-Palmolive undervalued by the market, according to Credit Suisse.

Colgate's shares held up better than the broader market during last year's sharp pullback on Wall Street, and its sales jumped during the stay-at-home period, but the stock is down 3% in 2021 as investors have bet on reopening plays like airlines.

Credit Suisse analyst Kaumil Gajrawala upgraded the stock to outperform from neutral, saying that worries about year-to-year comparisons for Colgate's business were misplaced.

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