Andrea Faria Teixeira, an analyst from J.P. Morgan, maintained the Hold rating on Clorox (CLX – Research Report). The associated price target was lowered to $144.00.
Andrea Faria Teixeira’s rating is based on several factors impacting Clorox’s financial outlook. The company missed its third-quarter expectations for organic sales growth and adjusted earnings per share, leading to a downward revision in its fiscal year 2025 sales guidance. This adjustment is attributed to a slowdown in consumer demand and retailer inventory reductions, despite a temporary boost in sales expected in the fourth quarter due to early shipments.
Additionally, Clorox faces challenges such as increased promotional activities in certain product categories and a shift in consumer behavior towards value-seeking, which could negatively affect its pricing strategy in the short to medium term. The company also anticipates a reversal of the sales pull-forward benefit in the first half of fiscal year 2026. Furthermore, Clorox is dealing with tariff-related costs, although its exposure is relatively smaller compared to some of its peers. These factors combined have led Andrea Faria Teixeira to maintain a Hold rating on Clorox’s stock.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $145.00 price target.