BofA Cuts Kimberly-Clark (KMB) Target on Lower Multiple Applied to 2027 Earnings

Kimberly-Clark Corporation (NASDAQ:KMB) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts.

On January 28, BofA analyst Anna Lizzul lowered her price objective on Kimberly-Clark Corporation (NASDAQ:KMB) to $130 from $148 and kept a Buy rating on the stock. The firm said Kimberly-Clark continues to execute on its transformation plan. The lower target reflects a reduced P/E multiple applied to the company’s 2027 EPS estimate, driven by valuation compression across the sector.

A day earlier, on January 27, Kimberly-Clark reported quarterly profit that came in above expectations. Results were supported by cost controls and steady demand for core products such as Huggies diapers and Kleenex tissues across North America, China, and other major markets.

In recent years, the Dallas-based company has cut jobs and exited lower-margin businesses, including its private-label diaper and personal protective equipment units. Those moves have helped protect margins. At the same time, the company has expanded its affordable product ranges, offering lower-priced items that still include premium features. The strategy is aimed at attracting cost-conscious shoppers while staying competitive.

Kimberly-Clark is also reshaping itself into a global consumer health company following its $40 billion acquisition of Tylenol maker Kenvue. The deal is expected to close by year-end and marks a major step in the company’s long-term strategy.

In the fourth quarter, prices declined 1.1%, while organic sales rose 2.1%. Growth was driven by a 2.7% increase in overall volumes, as consumers bought everyday essentials such as sanitary pads and paper napkins, often through warehouse clubs that sell larger, value-focused packs.

Kimberly-Clark Corporation (NASDAQ:KMB) is a global company focused on personal care products. Its operations are organized across North America and the International Personal Care segments.

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