DA Davidson Downgrades Clorox (CLX) to Neutral as POS Turns Negative and Comps Get Tougher

March 18, 2021 6:39 AM EDT
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Price: $195.07 --0%

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    5 Buy, 12 Hold, 5 Sell

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Today's Overall Ratings:
    Up: 7 | Down: 4 | New: 66
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(Updated - March 18, 2021 7:03 AM EDT)

DA Davidson analyst Linda Bolton Weiser downgraded Clorox (NYSE: CLX) from Buy to Neutral with a price target of $189.00 (from $234.00) as POS turned negative (-10.8%) due to the start of hard COVID-driven prior-year comps, which get even harder.

The analyst comments "In the four weeks ended March 7th, IRI data showed POS turned negative (-10.8%) due to the start of hard COVID-driven prior-year comps, which get even more difficult next month (+75%). March's POS is well below the Street's F4Q21E sales of -1.7%. We are reducing our sales and EPS estimates for F4Q21 and FY22 to further below consensus. With the Street at $8.35 for FY21, we think CLX could fail to raise and might even lower its guidance of $8.05-$8.25. We are lowering our target P/E to 23x from 28x, cutting our PT to $189 from $234, based on 23x CY22E EPS of $8.20 (reduced from $8.36), and downgrading to NEUTRAL from Buy."

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 $189.59 yesterday.


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