Kimberly-Clark upgraded to Outperform from In Line at Evercore ISI

Evercore ISI analyst Javier Escalante upgraded Kimberly-Clark (KMB) to Outperform from In Line with a price target of $150, up from $133. Kimberly outlined an “ambitious restructuring plan” in yesterday’s investor day that the firm calls “strategically sound and financially attractive,” even if it doesn’t get fully “there.” Kimberly shares screen undervalued compared to peers, but what has kept Evercore on the sidelines was the widening profit gap between Kimberly and “twin” Procter’s (PG) Baby & Family division. However, with the shares trading one standard deviation below their 20-year average versus Staples, the stock should work, even if only as a “regression-to-the-mean” investment strategy, the analyst tells investors.