Barclays maintains Clorox stock Underweight with $130 target

On Monday, Barclays (LON:BARC) analyst Lauren Lieberman maintained an Underweight rating on Clorox stock (NYSE:CLX), with a price target of $130.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $130 to $189. Lieberman noted that Clorox has become popular among investors, who view the company as likely to continue outperforming expectations. The company, trading at a P/E ratio of 55.8, is also seen as shielded from certain industry concerns related to GLP-1 and MAHA, as well as being less affected by fluctuations in the U.S. dollar compared to its peers.

Despite the positive sentiment from the broader investment community, Lieberman expressed reservations based on Nielsen data, which she found less than convincing. The analyst suggested that the focus might shift towards the long-term attainability of Clorox’s growth algorithm as the market enters a more normalized phase. InvestingPro analysis reveals that Clorox has maintained dividend payments for 55 consecutive years, with a current dividend yield of 3.1%, demonstrating consistent shareholder returns despite market fluctuations.

The commentary reflects a cautious stance on the stock, despite the general investor optimism surrounding Clorox’s recent performance and its perceived resilience in the face of industry-specific challenges and currency volatility. Lieberman’s assessment implies that while the company is currently in favor, the underlying data may not fully support continued outperformance.

Investors are likely to watch Clorox closely as the market conditions evolve, to see if the company can sustain its growth and meet its long-term targets. The current price target set by Barclays suggests that the firm does not anticipate significant upside for Clorox shares in the near future.

Clorox, known for its cleaning and disinfection products, has seen increased relevance and investor interest in recent times, particularly during periods of heightened health concerns. The company’s stock performance and future outlook remain subjects of analysis and discussion among market watchers and stakeholders.

In other recent news, The Clorox Company has been the focus of several significant developments. The company reported strong first-quarter earnings for fiscal year 2025, outperforming expectations with a substantial earnings per share beat and a robust 31% growth in organic sales. However, Clorox projects a low-teens sales decrease for the second quarter due to volume pull-forward but anticipates organic growth between 3% to 5% for the latter half of the year.

Clorox also announced a quarterly dividend of $1.22 per share, reflecting its commitment to shareholder value. Analysts from TD Cowen, DA Davidson, and Jefferies have adjusted their stance on Clorox, with TD Cowen upgrading the stock from Sell to Hold and DA Davidson raising Clorox’s price target to $171.00.

In leadership changes, Clorox announced the retirement of its CFO and the appointment of a successor, emphasizing its operational strength and the upcoming phase of growth. The company also expanded its board with two new directors, Stephen Bratspies and Pierre Breber, as part of its strategic efforts to enhance its leadership and growth. These are recent developments and further updates are expected in the future.

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