Analyst Robert Moskow of TD Cowen maintained a Hold rating on Clorox (CLX – Research Report), reducing the price target to $135.00.
Robert Moskow has given his Hold rating due to a combination of factors affecting Clorox’s performance. The company reported disappointing third-quarter sales and earnings, which were impacted by slower growth in their categories due to a weaker consumer environment. This was unexpected for a company typically seen as resilient during economic downturns. Additionally, Clorox’s guidance for the fiscal year 2025 was lowered, indicating further challenges ahead.
Clorox’s management highlighted several issues, including a decline in category growth and market share losses in certain areas like cat litter. The company’s sales were negatively affected by unfavorable price and mix, and international growth slowed significantly. Despite a better-than-expected gross margin, earnings per share fell short of expectations. Furthermore, the potential impact of tariffs poses an additional risk, with management estimating a significant cost if not mitigated. These factors collectively contributed to Moskow’s decision to maintain a Hold rating on Clorox’s stock.
According to TipRanks, Moskow is a 4-star analyst with an average return of 2.5% and a 48.53% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Freshpet, and Vital Farms.