Clorox downgraded to Neutral from Buy at Citi

Citi analyst Filippo Falorni downgraded Clorox to Neutral from Buy with a price target of $165, down from $170. The firm believes its call for a quick recovery post the company’s August 2023 cybersecurity incident has largely played out, with Clorox’s pace of shelf space and market share recovery expected to slow in fiscal Q3 and more tied with the spring shelf space resets in Q4. Citi still sees room for gross margin upside in the second half of 2024, but believes this is now better understood by the market and the magnitude of upside is lower than Q2, the analyst tells investors in a research note.