Barclays Raises Clorox (CLX) Target to $109 but Keeps Underweight on Fundamentals Concerns

The Clorox Company (NYSE:CLX) is included among the 15 Best High Yield Stocks to Buy.

On January 16, Barclays raised its price target on The Clorox Company (NYSE:CLX) to $109 from $108, but it still kept an Underweight rating on the stock. The change came as part of Barclays’ Q4 preview for the consumer staples space. In the note, the firm said the recent “enthusiasm” in Clorox shares appears to be driven more by “a flight to safety” than by improving fundamentals. Barclays also said it remains worried about both Clorox’s outlook and the broader sector, especially with potential oil and currency headwinds that could show up more clearly in 2026.

Clorox’s stock performance has been rough for a while now, down more than 45% over the past five years. The company has been clear that this fiscal year is more of a reset and transition period, mainly because it’s in the middle of rolling out a major ERP system upgrade. Management has said key parts of the business, including international operations, supply chain, finance, and data systems, had become outdated over time, which left Clorox exposed during the 2023 cyberattack. Moving to a cloud-based setup is meant to modernize those areas and eventually improve efficiency.

However, in the near term, Clorox’s expectations are very low. The ERP shift caused unusually large shipments to retail partners late in fiscal 2025, which basically pulled demand forward. That’s one reason demand looks softer at the start of fiscal 2026 (which began July 1, 2025). For the full year, the company now expects organic sales growth to decline 5% to 9%, including a 7.5 basis point drag tied to the ERP transition. In other words, if you strip out the ERP disruption, organic sales are expected to be roughly flat. Profit expectations are also under pressure, largely for the same reason.

The Clorox Company (NYSE:CLX) is a global maker of consumer and professional products, operating across four main segments: Health and Wellness, Household, Lifestyle, and International.

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