Kimberly Clark stock price target raised to $145 from $140 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on Kimberly Clark (NASDAQ:KMB) to $145.00 from $140.00 while maintaining a Buy rating following the company’s better-than-expected second-quarter results. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics and revenue of $19.7 billion in the last twelve months.

The firm highlighted that Kimberly Clark delivered 5% volume-led growth in the quarter, leading to an earnings beat. Goldman noted this represented the company’s strongest volume growth quarter in the past five years, benefiting from resilient category demand and successful innovation initiatives. The company has demonstrated consistent shareholder returns, having maintained dividend payments for 55 consecutive years, as highlighted by InvestingPro’s analysis.

Goldman Sachs attributed the strong performance to changes in Kimberly Clark’s strategy, including new-to-the-world innovation that delivers improved brand propositions across the value spectrum, which is resonating with consumers seeking better value in the current environment.

The investment bank also pointed to Kimberly Clark’s award-winning advertising, which has improved storytelling and created emotional connections with consumers, ultimately translating into faster volume growth and market share gains.

Goldman Sachs believes Kimberly Clark is transforming into a higher branded growth consumer packaged goods company, and with the stock still trading at a discount to its household and personal care peers, the firm sees an attractive risk/reward profile. Trading at a P/E ratio of 18.1 and maintaining a solid 3.86% dividend yield, the stock currently appears fairly valued according to InvestingPro’s Fair Value model. Discover more insights and 8 additional ProTips about KMB with an InvestingPro subscription, including detailed analysis available in the comprehensive Pro Research Report.

In other recent news, Kimberly-Clark Corp reported its second-quarter 2025 earnings, showing a mixed financial performance. The company achieved an earnings per share (EPS) of $1.92, surpassing analysts’ expectations of $1.65 by 16.36%. Despite this positive earnings result, Kimberly-Clark experienced a revenue shortfall, reporting $4.16 billion compared to the anticipated $4.77 billion, indicating a 12.79% miss. These developments highlight the company’s continued challenges in meeting revenue projections. The earnings results have caught the attention of investors and analysts alike. Some analysts may adjust their outlooks based on these figures, though specific upgrades or downgrades were not mentioned in the provided context. These recent developments are significant for investors keeping an eye on Kimberly-Clark’s financial health.

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