Kimberly-Clark Likely to Post 'Underwhelming' Q4, UBS Says

MT Newswires Live01-21

Kimberly-Clark (KMB) is expected to report an "underwhelming" Q4 performance due to a more subdued category backdrop, UBS

Securities said in a Monday report.

"Although trends have improved somewhat in recent weeks, like many HPC peers, demand has been subdued for KMB in 4Q," the report said. HPC refers to householder personal care.

For Q4, UBS analysts expect an EPS of $1.76, in-line with Visible Alpha consensus but below FactSet's $1.81, the note said. The Q4 results are due on Jan. 27.

The report also said fundamentals are taking a backseat amid its looming Kenvue (KVUE) transaction.

"Although valuation is compelling on both a relative/absolute basis, our conversations with investors would suggest little incremental interest in stepping in at this stage with much of the catalyst path hinging on the KVUE transaction," it said.

UBS kept its neutral rating on the stock with a $107 price target.

Price: 100.98, Change: +1.66, Percent Change: +1.67

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