uploads///bottles _

Why JPMorgan Chase Has Downgraded Clorox Stock


Apr. 8 2019, Published 1:16 p.m. ET

Clorox downgraded to “underweight”

The Clorox Company (CLX) stock fell ~1% on April 8 after JPMorgan Chase downgraded it to an “underweight” from a “neutral” and reduced its target price to $139 from $159. Distribution losses and the negative impact from tariffs are also expected to hurt Clorox stock. Currency volatility is also expected to limit its top line growth.

The stock’s reduced target price indicates a potential downside of ~11% based on its closing price of $155.60 on April 5.

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

The company’s Household segment, which includes bags and wraps, cat litter, charcoal, and digestive health, is facing challenges amid distribution losses in the bags and wraps business. Meanwhile, the charcoal business was affected by a shift in the timing of its shipments.

We expect Clorox’s Household segment to continue to face challenges in the coming quarters. However, innovation-driven products are expected to support its sales.

Article continues below advertisement

Rating and target price

Among the 18 analysts tracking CLX, nine have given it “holds,” five have given it “sells,” and four have given it “buys.” Analysts have a target price of $153 per share on CLX, which implies a potential downside of 1.7% based on its closing price of $155.60 on April 5.

Besides Clorox, the majority of analysts recommend “holds” on the shares of Procter & Gamble (PG), Kimberly-Clark (KMB), Church & Dwight (CHD), and Colgate-Palmolive (CL).


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.