Analysts maintain a “hold” rating
Most analysts prefer to maintain a neutral stance on Clorox (CLX) stock. Clorox’s price restructuring initiatives and innovation are expected to support sales and somewhat offset the negative impact of inflation in input costs.
However, lower sales of bags, wraps, and wipes are expected to drag sales down. Also, heightened competitive activity and an adverse foreign exchange rate are likely to limit the sales growth rate. Moreover, Clorox’s profit margins are expected to stay low as currency volatility—and higher manufacturing and logistics costs—could continue to offset the benefits from higher pricing and cost savings.
Near-term sales and earnings headwinds and high valuation are keeping analysts on the sidelines for Clorox stock.
Ratings and target prices
Of the 17 analysts providing recommendations, 11 say to “hold” Clorox stock. Four analysts recommend a “sell,” and two analysts have a “buy” rating. Multiple analysts lowered their target prices on CLX stock recently. Jefferies reduced its target price for CLX to $145 from $160. Meanwhile, Morgan Stanley now has a target price of $141, down from $150. BMO lowered its target price to $168 from $175 while Wells Fargo reduced its target to $153 from $157.
Analysts, on average, have a target price of $146.64 per share on Clorox, which is at par with its closing price on May 20.