Jefferies Cuts Clorox (CLX) Price Target, Flags Tough Second Half Ahead

The Clorox Company (NYSE:CLX) is included among the 10 Best Bear Market Stocks to Invest in Right Now.

Jefferies Cuts Clorox (CLX) Price Target, Flags Tough Second Half Ahead

On April 21, Kaumil Gajrawala of Jefferies lowered the firm’s price recommendation on The Clorox Company (NYSE:CLX) to $139 from $151. It reiterated a Buy rating on the shares. He noted that Clorox is heading into a difficult second half. Geopolitical tensions, inflation, and continued share losses are weighing on performance. Category improvement remains limited. He added that Q3 organic growth is likely to come in slightly below expectations. FY26 EPS guidance could also be reduced. The focus, in his view, will be on further estimate cuts and commentary around the longer-term outlook.

On April 17, JPMorgan downgraded CLX to Underweight from Neutral. The firm also cut its price target to $99 from $117 ahead of the fiscal Q3 report scheduled for April 30. The firm expects category growth to stay below historical levels for some time. It pointed to “exogenous factors,” including pressure on lower-income US consumers. It also highlighted Clorox’s exposure to categories where private label competition is strong, particularly in trash bags and surface cleaning. In addition, the firm sees cost pressures from diesel and resins. Based on this, it believes there is downside risk to estimates and expects management to narrow its guidance range.

The Clorox Company (NYSE:CLX) is a multinational manufacturer and marketer of consumer and professional products.

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