Happy news for Clorox (NYSE:CLX) investors, as the bleach kingpin and former pandemic darling not only landed an upgrade but it’s also got a decent shot at turning a few things around. The recent cyber attack may not hurt it too badly, either, and that’s sent shares up well over 2% in Monday afternoon’s trading.
Word from UBS says that Clorox stock is now featuring a much better risk-to-reward ratio and, accordingly, has pivoted its position from Sell to Neutral. With the hike in rating also came a hike in price target, going from $124 to $132 per share.
The guidance for full-year 2024, meanwhile, offered what UBS analyst Peter Grom noted as an “…appropriate degree of conservativism in light of the dynamic operating environment….” Yet, Grom also noted that, in order to make UBS more confident overall, Clorox would have to provide “…more confidence in the company’s ability to drive the volume/share growth necessary to boost valuation from here.”
And with the company recently under attack by hackers, one might wonder if Clorox could possibly provide that necessary confidence. A new report suggests that it might; Clorox reported just days ago that it looks to rebuild its inventory levels back to standard before this quarter is finished.
That’s actually a tall order, given that this is a major entertaining season with multiple holidays to consider, and thus, a lot of people doing a lot more wash in the meantime. Indeed, several private label brands made hay while that particular sun shined, costing Clorox a bit of market share. But with the disruption likely over—at least for now—the odds of it getting some, if not most, of it back should be sound.
Is Clorox a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on CLX stock based on two Buys, seven Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CLX price target of $131.15 per share implies 1.65% upside potential.
