JPMorgan Double Upgrades Clorox (CLX) to Overweight; Sees Upside to Estimates on COVID-19 Demand

JPMorgan analyst Andrea Teixeira upgraded Clorox (NYSE: CLX) from Underweight to Overweight with a price target of $185.00 (from $153.00).

The analyst comments "We believe COVID-19 created upside risks to estimates at a time that Clorox was set to regain shelf space as management increased marketing spending behind key categories after losing share in wipes, trash bags, laundry and charcoal. CLX is lapping distribution in tracked channels in Bags, Wraps and Containers, and Charcoal (~21% of CLX FY19 sales), which had put pressure volume performance. Since CLX was one of the first HPC to increase prices in the US in 2018 and 2019 and since then resin costs rolled over, volume declines had been a of price gaps against competitors. That said, we believe price elasticity is taking a back seat post COVID-19 outbreak. We believe Clorox is one of the few companies in our coverage that has upside to risk to consensus estimates at this point, along with Kimberly Clark and Reynolds Consumer Products (both OW-rated)."

For an analyst ratings summary and ratings history on Clorox click here. For more ratings news on Clorox click here.

Shares of Clorox closed at $167.77 yesterday.

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