Kimberly-Clark's Long Term Outlook, Cost Savings Plan Looks Encouraging, Analyst Says
Portfolio Pulse from Shivani Kumaresan
Piper Sandler analyst Korinne Wolfmeyer has reiterated an Overweight rating on Kimberly-Clark Corp (NYSE:KMB) and increased the price target from $145 to $152. The company is adopting a new operating model to accelerate innovation, optimize costs, and reorganize into three business segments. Expected savings of $200 million over the next two years will be reinvested into the business. Strategies include focusing on low private-label penetration categories, global scaling of innovations, and mergers & acquisitions. The company aims for 3%+ top line growth, margin expansion, and more than $2 billion in annual free cash flow, supporting dividend growth and share repurchases. KMB shares rose 1.91% to $129.71.
March 28, 2024 | 6:12 pm
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POSITIVE IMPACT
Kimberly-Clark Corp's stock rating has been reiterated as Overweight by Piper Sandler, with a price target increase from $145 to $152, reflecting confidence in the company's new operating model and long-term financial strategies.
The positive outlook from Piper Sandler, including a price target increase, reflects strong analyst confidence in Kimberly-Clark's strategic direction and financial health. The focus on innovation, cost savings, and strategic investments, along with expected top line growth and cash flow improvements, are likely to positively impact the stock price in the short term. The recent share price increase further supports this positive sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100