Clorox, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Anna Lizzul from Bank of America Securities reiterated a Hold rating on the stock and has a $135.00 price target.
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Anna Lizzul’s rating is based on a combination of factors, including the current soft category growth for Clorox, which remains below historical trends. The company’s guidance for fiscal year 2026 suggests modest category growth of 0-1%, with expectations for improvement in the second half of the year. While there has been some improvement from previous slightly negative growth, it still falls short of the historical 2-2.5% growth rate.
Additionally, Clorox’s fiscal 2026 sales and gross margin guidance appear achievable, despite challenges such as the ERP transition and expenses from plant storm damage. Consumer behavior has shifted towards value-seeking, with increased purchases from Club and online retailers, although Clorox does not anticipate significant de-stocking in other channels. The company remains focused on innovation as a differentiator from private labels. In the longer term, Clorox expects to return to its IGNITE strategy and historical growth rates, which supports the Hold rating.
In another report released on August 7, TD Cowen also maintained a Hold rating on the stock with a $120.00 price target.