Bank of America Securities analyst Anna Lizzul maintained a Buy rating on Kimberly Clark (KMB – Research Report) yesterday and set a price target of $154.00.
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Anna Lizzul has given her Buy rating due to a combination of factors, primarily centered around Kimberly Clark’s strategic joint venture with Suzano. This partnership, which involves the International Family Care and Professional business, marks a pivotal step in the company’s transformation strategy aimed at divesting underperforming segments and reducing cost volatility. The joint venture is expected to enhance Kimberly Clark’s focus on higher growth and higher margin personal care categories, thereby improving its overall financial performance.
Additionally, the transaction is set to lower Kimberly Clark’s exposure to input cost fluctuations, particularly from fiber, and reduce its reliance on private label products internationally. Despite an anticipated short-term EPS dilution following the transaction’s closure, the company plans to return initial cash proceeds to shareholders through buybacks. The maintained Buy rating and price objective of $154 reflect confidence in Kimberly Clark’s ability to achieve long-term growth through volume increases, cost efficiencies, and market share expansion.
KMB’s price has also changed slightly for the past six months – from $138.150 to $135.300, which is a -2.06% drop .