DA Davidson downgrades Clorox with upgrade thesis played out

DA Davidson analyst Linda Bolton Weiser downgraded Clorox to Neutral from Buy with an unchanged price target of $162. The company’s recovery from the August 2023 cyberattack has been quicker than expected as its market share is nearly back to normal, the analyst tells investors in a research note. The firm says that with the shares up 36% in three months, its October 2 upgrade thesis has played out. Meanwhile, Clorox’s sales growth should be lower going forward, and year-over-year gross margin contraction is expected in the second half of 2024 it laps pricing benefits, says Davidson. The firm says “fundamental tailwinds are turning to headwinds.”