Why Analysts Are Neutral on PG, KMB, CL, and CLX

Upside restricted

Most of the analysts continue to have a neutral outlook on the stocks of packaged goods manufacturers including Kimberly-Clark (KMB), Procter & Gamble (PG), Clorox (CLX), and Colgate-Palmolive (CL).

Analysts expect soft sales, weak margins, and pressure on earnings to continue to restrict the upside. Consumer packaged goods manufacturers are increasing pricing to offset the cost headwinds and are focusing on innovation and cost savings to drive sales and margins. However, heightened competitive activity in the value segment, macroeconomic challenges in certain markets, and higher input and logistics costs will likely continue to hurt the financials of these companies.

Why Analysts Are Neutral on PG, KMB, CL, and CLX

Ratings and target price

Of the 19 analysts covering Kimberly-Clark stock, 11 analysts maintain a “hold,” five analysts have a “sell” rating, and three analysts recommend a “buy.” Analysts have a consensus target price of $105.56 per share on KMB stock, which indicates a downside of 5.1% based on its closing price of $111.21 on August 9.

Meanwhile, of the 24 analysts covering Procter & Gamble stock, 18 analysts suggest a “hold,” five maintain a “buy,” and one analyst has a “sell” recommendation. Analysts’ consensus target price of $83.03 per share indicates an upside of a mere 2.0% based on its closing price of $81.40.

As for Clorox stock, 12 analysts recommend a “hold,” three analysts suggest a “sell,” and two analysts maintain a “buy” rating. Analysts’ consensus target price of $134.07 per share indicates downside of 4.4% based on its closing price of $140.21 on August 9.

Among 21 analysts covering Colgate-Palmolive stock, 14 analysts recommend a “hold,” six analysts suggest a “buy,” and one analyst has a “sell” rating. Analysts’ target price of $69.21 per share indicates an upside of 5.0% to its closing price of $65.93.