Kimberly-Clark downgraded to In Line from Outperform at Evercore ISI

Evercore ISI downgraded Kimberly-Clark (KMB) to In Line from Outperform with a price target of $120, down from $150. The firm views the company’s acquisition of Kenvue (KVUE) as “opportunistic and gutsy.” However, the deal takes Kimberly-Clark from a “low-risk restructuring and reorganization” story to one “with many moving pieces,” the analyst tells investors in a research note. Evercore says its math for the combined company’s earnings power in 2027 and 2028 does not suggest enough upside relative to standalone Kimberly’s consensus estimates to provide an attractive risk/reward trade-off.