11:37 AM EDT, 06/07/2024 (MT Newswires) -- Colgate-Palmolive ( CL ) is considered more defensive than mega-cap peers as its products are basic necessities that are "clearly defensive," Morgan Stanley said Friday in a note to clients.

Colgate-Palmolive ( CL ) products performed better than those from mega-cap peers even during the 2008-2009 recession, highlighting defensiveness which is a near-term advantage in a weaker consumer environment, according to the note.

The firm also said that in the US, where "macro risk is more pronounced" currently, Colgate-Palmolive ( CL ) has a sales mix exposure of 31% compared with 47% at mega-cap peers.

Morgan Stanley added that the company's recent results have been stronger than those of its peers. "Importantly, not only are results superior to peers, but [Colgate-Palmolive ( CL )] results are also more balanced across three key vectors, which give us greater confidence in forward sustainability."

Morgan Stanley maintained Colgate-Palmolive's ( CL ) overweight rating with a price target of $103 and added the company back as its "Top Pick" in household products.

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