Citi analyst Filippo Falorni maintained a Hold rating on Clorox (CLX – Research Report) today and set a price target of $150.00.
Filippo Falorni has given his Hold rating due to a combination of factors affecting Clorox’s financial outlook. Despite a positive performance in gross margin and an increase in FY24 gross margin and EPS guidance, Falorni notes the company’s top-line growth has been less promising. The third fiscal quarter showed a miss in organic sales growth, particularly in the U.S. market, which was more significant than anticipated. Falorni highlights the challenge Clorox faces in regaining shelf space and acknowledges the lowered sales guidance, suggesting a cautious view of the company’s near-term revenue trajectory. Additionally, he points out potential risks to future margins due to the possibility of rising commodity costs.
Furthermore, Falorni’s analysis considers the updated fiscal year 2024 guidance, which, while improving in some areas, still positions the expected organic sales growth at the lower end of previous estimates. The report also reflects on the impact of foreign exchange headwinds and the divestiture of the Argentina business on net sales. Despite a better-than-expected earnings per share for the third fiscal quarter and an upward revision for the full year’s EPS, the report concludes with a lowered target price for Clorox’s stock. This adjustment reflects a valuation based on a price-to-earnings multiple slightly below the company’s last ten-year average, suggesting that the stock’s potential for appreciation may be limited in the near term.
According to TipRanks, Falorni is a 2-star analyst with an average return of 0.0% and a 67.24% success rate. Falorni covers the Consumer Defensive sector, focusing on stocks such as Clorox, Molson Coors, and Boston Beer.
In another report released on April 24, RBC Capital also maintained a Hold rating on the stock with a $143.00 price target.
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Clorox (CLX) Company Description:
Founded in 1913, California-based The Clorox Co. manufactures and markets consumer and professional products. It operates through four business segments: Health and Wellness, Household, Lifestyle, and International.
