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Investing.com - Jefferies initiated coverage on Kimberly Clark (NASDAQ:KMB), currently trading near its 52-week low at $119.63, with a Hold rating and a $30.00 price target on Thursday. According to InvestingPro data, the consumer goods giant maintains a market capitalization of $39.69 billion.
The research firm’s analysis indicates a potential 9.3% implied total shareholder return based on approximately 5.0% EBITDA compound annual growth rate through 2030, which exceeds the Street’s estimate of about 4.3%. The company currently offers a substantial 4.21% dividend yield and has raised its dividend for 52 consecutive years.
Jefferies noted that Kimberly Clark has tripled its natural gas backlog since 2023 and maintains outsized exposure to LNG and Southeast power demand, which the firm considers positive factors.
Despite these strengths, Jefferies believes these positive elements are largely priced into the current valuation, with the stock trading at approximately 10.5x FY28 EV/EBITDA, above the industry average of about 9x.
The firm stated that "more visible catalysts are necessary before warranting rerating," suggesting that additional growth drivers would be needed to justify a more bullish outlook on the stock.
In other recent news, Kimberly-Clark Corp reported its second-quarter 2025 earnings, with an earnings per share (EPS) of $1.92, significantly exceeding the forecasted $1.65. Despite this earnings beat, the company experienced a revenue shortfall, reporting $4.16 billion compared to the expected $4.77 billion. Goldman Sachs responded to these results by raising its price target for Kimberly-Clark to $145, highlighting the company’s 5% volume-led growth, which was the strongest in five years. However, Piper Sandler lowered its price target to $145, citing near-term competitive pressures and increased promotional activity. Similarly, Evercore ISI reduced its price target to $150 and adjusted its third-quarter sales estimates due to pantry loading and marketing delays in North America.
Additionally, Kimberly-Clark appointed John Carmichael as President of North America, effective September 15, succeeding interim President Kurt Laufer. Carmichael will oversee the company’s personal care, family care, and professional businesses across the United States and Canada. These developments come amid shifting market dynamics and strategic changes within the company.
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