Shares of consumer and professional products provider The Clorox Company (NYSE:CLX) are trending lower today following the disclosure of unauthorized activity on some of its IT systems.
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The company took immediate steps, including taking some of its systems offline, to stop and remediate the unauthorized activity. It has now put into action its business continuity plans and initiated manual ordering and processing procedures at a decreased rate of operations.
This decreased pace of order processing is leading to increased issues with consumer product availability. Furthermore, the cyberattack damaged parts of Clorox’s IT infrastructure, resulting in a widescale disruption in its operations. The company has contained the cyber attack and is in the process of repairing and reintegrating its systems.
While production has resumed at a majority of its manufacturing facilities, normal automated order processing is anticipated to begin in the week of September 25.
Importantly, the company expects the production outages and order processing delays to materially impact its first-quarter results. The cyber incident at Clorox comes only a few days after cyberattacks at casino giants MGM Resorts (NYSE:MGM) and Caesars Entertainment (NASDAQ:CZR).
What Is the Target Price for Clorox Stock?
Overall, the Street has a consensus price target of $154.20 on Clorox, alongside a Moderate Sell consensus rating.
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