Clorox's Fiscal Q1 Organic Sales Growth to Stay Pressured, With Costs Impacting Earnings, UBS Says

MT Newswires Live10-27 02:44

Clorox's (CLX) fiscal Q1 underlying organic sales growth is expected to stay "pressured," with elevated commodity and transportation costs weighing on earnings, UBS said in a note Monday.

UBS forecasts organic sales growth of 15.8%, below the Street's 17.9%, and EPS of $1.06 versus consensus of $1.10.

The company lacks a near-term catalyst because demand trends have yet to show significant improvement and input cost pressure continues to build, even as valuation screens attractive versus household and personal care peers, UBS said in a note Monday.

The brokerage said greater visibility on the top- and bottom-line trajectory is needed before investors step in. While investors appear braced for negative estimate revisions, the long-term debate remains focused on sales and market share, with no significant shifts observed so far, according to the note.

Clorox will release its fiscal Q1 results on Nov. 2.

UBS maintained its neutral rating and $91 price target on the stock.

Price: 86.40, Change: -0.01, Percent Change: -0.01

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