Clorox Faces Weak Demand, Cost Pressure, RBC Says

MT Newswires Live08-05

Clorox (CLX) could face slow underlying sales, lower margins and continued pressure in charcoal and litter, while the GOJO deal, trash bag share gains, and price increases may provide some support, RBC Capital Markets said in a note Tuesday.

The investment firm expects Clorox's fiscal 2027 sales to rise 13.5%, helped mainly by GOJO and comparisons with last year's system transition, as GOJO performed better than expected and should support sales, while Hidden Valley and Glad share gains offer some positive signs, while underlying growth is likely to remain between flat and 1%.

RBC cut its fiscal 2027 adjusted earnings estimate to $5.85 per share from $6.12 after Clorox issued weaker-than-expected gross margin guidance.

RBC said it expects weak demand and high inventory to weigh on Kingsford charcoal sales through the rest of the grilling season and into fiscal Q1.

RBC lowered the company's price target to $110 from $118 and kept its sector perform rating.

Price: 101.60, Change: +3.33, Percent Change: +3.39

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment