Kimberly-Clark: Weak Growth Performance Continues To Be A Major Concern (Rating Upgrade)
Portfolio Pulse from
Kimberly-Clark's growth performance remains weak, with Q4 sales falling 0.8% year-over-year. Despite an upgrade from sell to hold, concerns persist about the company's ability to meet FY25 guidance due to limited pricing power and volume growth challenges.
February 05, 2025 | 12:45 pm
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NEUTRAL IMPACT
Kimberly-Clark's Q4 sales fell 0.8% y/y, with organic sales growth at 2.3%. The stock was upgraded from sell to hold, but concerns remain about meeting FY25 guidance due to limited pricing power and volume growth challenges.
The upgrade from sell to hold suggests that the market has already priced in the downside risks, keeping the valuation stable. However, the weak sales performance and skepticism about meeting future guidance indicate ongoing challenges, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100