What's In Store For Clorox This Earnings Season? Analyst Sees Issues With Trash Bags, Cat Litter & More
Portfolio Pulse from Nabaparna Bhattacharya
RBC Capital Markets analyst Nik Modi maintains a Sector Perform rating on Clorox Company (NYSE:CLX) with a price target of $138. Clorox is set to release Q2 fiscal year 2024 results on Feb. 1, 2024. Despite a nearly 20% stock rally since late October, Modi is cautious due to potential issues with trash bags, cat litter, Hidden Valley Ranch, and Wipes, although charcoal is performing well. The analyst expects pricing moderation and volume challenges, and notes that the 2023 cyber-attack has delayed recovery, with ongoing shelf space challenges and a sluggish macro environment potentially impacting categories with high private label exposure. CLX shares were up 0.79% to $145.85 at last check.
January 30, 2024 | 7:28 pm
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Clorox faces challenges with certain products and a slow recovery from a cyber-attack, which may affect investor sentiment despite a recent stock rally. Analyst Modi's cautious stance ahead of Q2 earnings could influence stock performance.
The cautious outlook from RBC Capital Markets, combined with the specific issues mentioned such as product challenges and the impact of a past cyber-attack, could lead to negative investor sentiment in the short term. The stock has rallied recently, but the analyst's concerns and the upcoming earnings report may result in a pullback if investors adjust their expectations based on these insights.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100