DA Davidson Downgrades Clorox (CLX) to Neutral as POS Turns Negative and Comps Get Tougher
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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."
Shares of Clorox closed at $189.59 yesterday.
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