01:26 PM EDT, 07/24/2024 (MT Newswires) -- Colgate-Palmolive ( CL ) is expected to report strong Q2 results amid a robust emerging market momentum, international share gains, and improvements in the US business, RBC Capital Markets said in a note Wednesday.

Investors are likely looking for a modest increase in full-year 2024 guidance heading into the Q2 results, the investment firm said.

RBC expects Colgate-Palmolive ( CL ) to meet expectations for the quarter and be able to slightly increase its outlook for both revenues and expenses while maintaining a cautious approach considering the overall economic instability.

The company is also seeing the benefits of its longer-term investment cycle, the brokerage said.

The brokerage anticipates the company to achieve sales expansion in line with its long-term goals, supported by organizational adjustments in recent years that have enhanced the firm's global market presence, share performance, and benefits from reinvestment.

RBC has a sector perform rating on the stock with a $95 price target.

With the risk-to-reward ratio positive and the stock pricing in a lot of good news, RBC said it considers Colgate-Palmolive ( CL ) as "a high quality Sector Perform name but would not commit fresh capital at the current valuation."

The company shares were narrowly higher at $96.89 in recent trading.

Price: 96.89, Change: +0.34, Percent Change: +0.35