Jefferies Trims Clorox (CLX) Price Target, Maintains Buy Rating

The Clorox Company (NYSE:CLX) is one of 10 consumer defensive stocks to buy now. 

Jefferies has adjusted its price target on The Clorox Company (NYSE:CLX) to $145 from $167, while maintaining a Buy rating on the stock. In its latest research note, the firm warned that the next two quarters “will be complicated to model” due to “shipping timing ahead of Clorox’s U.S. ERP rollout and wind down” which is expected to impact margins through unexpected swings in operating leverage.

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Analysts at Jefferies anticipate Clorox’s upcoming guidance will reflect a drop of between 2% and 4% in organic sales, coupled with a low-teens percentage decline in EPS for FY26. Cautioning investors, they noted that “numbers are too high,” recommending a “recalibration” of consensus estimates. Despite these near-term challenges, Jefferies retains confidence in Clorox’s long-term strengths. The firm views the company’s strong consumer staples portfolio and established brand as sufficient to weather temporary operational disruptions. While acknowledging potential volatility in the quarters ahead, Jefferies believes that once the ERP implementation settles, The Clorox Company (NYSE:CLX) will return to a more stable growth trajectory.

Investors are advised to brace for “operating leverage and deleverage that surprises” during the transition period, but remain optimistic about management’s ability to manage through the upheaval and eventually deliver on its core fundamentals.

While we acknowledge the potential of CLX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CLX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.