Clorox: Analysts Reacted to the Fourth Fiscal Quarter Results

Multiple analysts raised target price

Several analysts raised their target price on Clorox (CLX) stock following the company’s fourth fiscal quarter results. Wells Fargo increased its target price to $135 per share from $123. Meanwhile, Jefferies increased its target price on Clorox to $138 per share from $124. RBC raised its target price to $134 from $130.

Analysts maintain a consensus target price of $129.67 per share on Clorox stock, which is 9.0% lower than its closing price of $142.44 on August 2.

Clorox: Analysts Reacted to the Fourth Fiscal Quarter Results

Rating summary

Clorox is projecting improved sales and earnings year-over-year for fiscal 2019. Innovation-led products, higher pricing, and benefits from the acquisition are expected to support the company’s financials. The gross margins are projected to remain flat or improve modestly, which is positive. However, negative currency rates and cost headwinds will likely hurt Clorox’s financials in the near term. Retaliatory tariffs could be the spoilsport.

Among the 17 analysts covering Clorox stock, 12 analysts recommend a “hold,” three analysts recommend a “sell,” and two analysts recommend a “buy.”

In comparison, most of the analysts also maintain a “hold” recommendation on other consumer packaged goods companies including Procter & Gamble (PG), Colgate-Palmolive (CL), and Kimberly-Clark (KMB). Softness in the sales growth rate and continued pressure on the margins are expected to restrict the upside in the near term.