Wells Fargo has revised its price target for Clorox (CLX, Financial), adjusting it downward from $142 to $135 while maintaining an Equal Weight rating on the stock. This adjustment reflects ongoing updates across various sectors, including Beverage, Food, and Household & Personal Care (HPC). The firm highlights weak consumption data as a primary concern and suggests that a potential adjustment to estimates could be on the horizon. Wells Fargo believes that until there is a clearer picture of consumption trends, Clorox (CLX) may face challenges in achieving growth in its stock valuation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Clorox Co (CLX, Financial) is $145.36 with a high estimate of $189.00 and a low estimate of $119.00. The average target implies an upside of 15.40% from the current price of $125.96. More detailed estimate data can be found on the Clorox Co (CLX) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Clorox Co's (CLX, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Clorox Co (CLX, Financial) in one year is $144.17, suggesting a upside of 14.46% from the current price of $125.96. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Clorox Co (CLX) Summary page.
CLX Key Business Developments
Release Date: May 05, 2025
- Gross Margin: Achieved 10th consecutive quarter of gross margin expansion.
- Market Share: Maintained overall market shares despite challenging conditions.
- Sales Performance: Experienced lower than expected sales due to weakened US consumer sentiment and macroeconomic uncertainties.
- Organic Sales Growth: Continued to deliver organic sales growth for the fiscal year.
- Earnings Growth: Anticipated another year of strong earnings growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Clorox Co (CLX, Financial) delivered its 10th consecutive quarter of gross margin expansion, demonstrating strong operational efficiency.
- The company maintained overall market share despite a challenging consumer environment, indicating brand strength and resilience.
- Clorox Co (CLX) continues to invest in its innovation pipeline and business transformation, positioning itself for future growth.
- The company has a strong portfolio of trusted brands that play an essential role in consumers' daily lives, providing a stable foundation.
- Clorox Co (CLX) has successfully implemented ERP transitions in Canada and financial planning tools, enhancing operational capabilities.
Negative Points
- US consumer sentiment weakened substantially in the second half of the third quarter, impacting sales negatively.
- Macroeconomic and geopolitical uncertainties have led to changes in shopping behaviors, resulting in temporary category impacts.
- The company faces headwinds from tariffs, with an expected unmitigated impact of about $100 million over a 12-month run rate.
- Retail destocking, particularly in the household segment, has affected sales and is expected to continue impacting Q4.
- Competitive promotional activity, especially in the Glad category, has pressured pricing and market dynamics.
