Kimberly Clark’s Strategic Reorganization and Growth Potential Earns Buy Rating

Goldman Sachs analyst Bonnie Herzog has maintained their bullish stance on KMB stock, giving a Buy rating on May 5.

Bonnie Herzog has given her Buy rating due to a combination of factors that highlight Kimberly Clark’s strategic positioning and potential for growth. The company has undergone significant changes, including a segment reorganization aimed at enhancing market agility and ensuring cost predictability. This strategic shift allows Kimberly Clark to effectively compete against private labels by focusing on innovation across different pricing tiers, which could lead to volume and mix-driven growth surpassing the broader category.
Despite facing challenges such as tariffs impacting EBIT and EPS growth, management is optimistic about mitigating these pressures through productivity savings. These efforts are expected to support reinvestments while maintaining strong gross and EBIT margins in the long term. Although macroeconomic uncertainties may affect short-term market trends, Kimberly Clark’s strategic focus and management’s confidence in their growth strategy underpin Herzog’s Buy rating.

In another report released on May 5, Piper Sandler also maintained a Buy rating on the stock with a $156.00 price target.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KMB in relation to earlier this year.