Colgate-Palmolive's (CL) Q4 results are unlikely to be a "meaningfully positive catalyst" due to a potential for negative estimate revisions, UBS said in an earnings preview emailed Friday.

Despite a marginal improvement in sentiment, investors are unlikely to step in ahead of the Q4 results as the company could issue 2025 guidance short of consensus estimates, UBS wrote.

Current consensus calls for solid mid-single digit earnings per share growth, which UBS said was "a bit optimistic" given currency headwinds.

"However, once estimates are appropriately reset and the focus shifts back to fundamentals, where we believe [Colgate-Palmolive] remains best-in-class in the group, we would not be surprised to see the stock become more in favor," UBS said.

UBS said it expects the company to issue initial 2025 underlying guidance in line with its long-term algorithm of 3% to 5% organic sales growth and high single-digit EPS growth. However, unfavorable currency headwinds will likely offset much of the guidance and result in EPS growth in the low single-digit range, the firm added.

UBS also expects the company's Q4 EPS to clock in at $0.88, a penny below consensus.

Colgate-Palmolive is set to release its Q4 results next Friday.

UBS maintained its buy rating on the stock and a price target of $104.

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