Goldman adds Colgate to 'Conviction Buy' list

(AP) — A Goldman Sachs analyst added Colgate-Palmolive Co. to his "Conviction Buy" list, predicting fourth-quarter profit will exceed Wall Street consensus expectations and sales volume will grow.

Analyst Andrew Sawyer told investors in a Wednesday research report that sales volume could grow 6 percent from roughly flat. The analyst said the growth would be boosted by the company's strong lineup of new products, increased investment in Colgate's brands and the strength of sales in emerging markets.

In addition to its namesake toothpaste, the consumer products company makes household staples such as Speed Stick deodorant, Palmolive dish soap and Irish Spring bar soap.

Sawyer estimated fourth-quarter profit will be $1.22 per share, higher than the $1.18 per share estimate of analysts polled by Thomson Reuters.

Sawyer said a "pickup in demand and significant tail winds from commodities and (foreign exchange rates) could drive robust 20 percent to 25 percent earnings-per-share growth."

Colgate-Palmolive, based in New York, is scheduled to report its fourth-quarter results on Jan. 28.

Shares dipped 15 cents to $78.62 in midday trading Thursday.