TD Cowen analyst Robert Moskow maintained a Hold rating on Kimberly Clark (KMB – Research Report) today and set a price target of $145.00.
Robert Moskow has given his Hold rating due to a combination of factors affecting Kimberly Clark’s financial outlook. The company reported a miss in first-quarter sales, although earnings per share exceeded expectations, largely due to productivity improvements and a lower tax rate. However, the guidance for 2025 organic sales was lowered, reflecting concerns over weakening consumer demand and category health.
Additionally, significant headwinds from tariffs are expected to impact earnings before interest and taxes (EBIT) and earnings per share (EPS), with an anticipated flat performance compared to previous high single-digit growth expectations. The company faces approximately $200 million in net incremental tariff costs, posing a substantial challenge to profitability. Despite these challenges, Kimberly Clark remains committed to price investments, which indicates a strategic focus on maintaining market position but also highlights the limited pricing power in its product categories. These factors combined have led to a cautious outlook, justifying the Hold rating.
Moskow covers the Consumer Defensive sector, focusing on stocks such as McCormick & Company, Mondelez International, and Vital Farms. According to TipRanks, Moskow has an average return of 2.5% and a 50.57% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $144.00 price target.