In a report released yesterday, Filippo Falorni from Citi maintained a Hold rating on Clorox, with a price target of $120.00.
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Filippo Falorni has given his Hold rating due to a combination of factors impacting Clorox’s financial performance and outlook. The company reported results for the first quarter of fiscal year 2026 that were softer than expected, yet slightly better than feared, with an organic sales growth decline of 17%. Despite this, the results were above the early September update, but the guidance for fiscal year 2026 points to the lower end of prior ranges, indicating challenges ahead.
Clorox’s guidance suggests continued pressure on sales and earnings, with expected organic sales growth between -9% to -5% and adjusted EPS ranging from $5.95 to $6.30. The company’s gross margin is also anticipated to decline, driven by factors such as lower shipment volumes and unfavorable commodity costs, partially offset by cost savings and pricing strategies. With limited visibility on underlying results and ongoing consumption softness, Filippo Falorni maintains a neutral stance, reflected in the Hold rating and a target price adjustment to $120.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $117.00 price target.