In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on Kimberly Clark (KMB – Research Report), with a price target of $145.00.
Robert Moskow has given his Hold rating due to a combination of factors influencing Kimberly Clark’s current and future performance. The company has shown progress in improving its gross margin, which has increased by 570 basis points since 2022. However, there is a lack of clear, detailed strategies on how these improvements were achieved and how they will be sustained moving forward, as the company has been focusing on numerous small projects and enhancing coordination.
Another reason for the Hold rating is the company’s efforts to build a variable cost advantage by restructuring its organization and improving global coordination. Despite these efforts, the historical sensitivity of Kimberly Clark’s gross margin to commodity price fluctuations remains a concern, potentially affecting their ability to meet long-term margin targets. Additionally, the company faces challenges from increased cost inflation, competitive pricing pressures, and a softer consumer spending environment, which could impact their growth projections. As a result, Moskow maintains a cautious stance, aligning his organic growth estimates with consensus expectations.
According to TipRanks, Moskow is a 4-star analyst with an average return of 2.5% and a 48.04% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, Vital Farms, and Freshpet.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $144.00 price target.