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Clorox: Margin Recovery Achieved but Ambitious Growth Targets Keep Rating at Hold

Clorox: Margin Recovery Achieved but Ambitious Growth Targets Keep Rating at Hold

In a report released yesterday, Dara Mohsenian from Morgan Stanley maintained a Hold rating on Clorox, with a price target of $136.00.

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Dara Mohsenian has given his Hold rating due to a combination of factors, balancing improving fundamentals with lingering execution risk. He recognizes that Clorox has restored margins after the inflation shock and is now shifting focus from one‑time recovery to ongoing efficiency, using cost savings to support innovation and brand investment rather than just protect profits.

At the same time, he remains cautious because organic sales growth targets appear ambitious relative to muted category trends and Clorox’s recent underperformance, leaving the pace of topline recovery uncertain. Expected benefits from innovation, shelf resets, and the GOJO acquisition could reaccelerate growth and improve portfolio resilience, but those drivers still need to prove out in the second half and into FY27, justifying a wait‑and‑see, Hold stance.

According to TipRanks, Mohsenian is a 5-star analyst with an average return of 7.7% and a 63.08% success rate. Mohsenian covers the Consumer Defensive sector, focusing on stocks such as e.l.f. Beauty, Clorox, and Monster Beverage.

In another report released on February 20, Bank of America Securities also maintained a Hold rating on the stock with a $124.00 price target.

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