11:43 AM EDT, 07/29/2025 (MT Newswires) -- Church & Dwight ( CHD ) is expected to deliver an in-line Q2, which should be enough to keep the stock on track despite recent underperformance and investor concerns around the company's pending acquisition of Touchland, RBC Capital Markets said in a note Tuesday.

Shares have lagged since a softer-than-expected Q1 and a guidance cut, but the brokerage belives that the expectations have now been reset.

"Delivery and reiteration will be enough in this environment," analysts wrote, adding that management "sounded positive" in intra-quarter meetings and that tracked channel data has improved sequentially.

RBC said investor skepticism around Touchland may be overstated. While the acquisition hasn't closed yet, the brand appears to have strong early momentum. The brand is resonating with younger consumers and bringing new shoppers into the category, with 96% of its growth coming from people who hadn't previously purchased hand sanitizers.

Distribution is currently focused on premium retail outlets like Sephora, Ulta (ULTA), and Amazon (AMZN), with mass-market expansion expected over time.

"We believe CHD's 60% premium/40% value portfolio is well positioned for the difficult economic environment," RBC said, citing benefits from trade-down behavior and momentum in categories such as detergent and litter.

The firm also pointed to easing tariff pressure, steady gross margins, and disciplined reinvestment as drivers of high-quality earnings growth.

RBC has an outperform rating on Church & Dwight ( CHD ), with a price target of $114.

Shares of the company were up 1.5% in recent Tuesday trading.

Price: 97.09, Change: +1.41, Percent Change: +1.47