Kimberly Clark (KMB) PT Raised to $150 at HSBC

HSBC analyst Alejandro Zamacona raised the price target on Kimberly Clark (NYSE: KMB) to $150.00 (from $146.00) while maintaining a Hold rating.

The analyst commented: "Slightly increase our TP to USD150, reiterate Hold: Our TP of USD150.00 (from USD146.00) implies upside of c11% and a 23x PE on 2024e earnings, above its 10-year historical average of 19x. We reiterate our Hold rating as we expect the company's market share in its core categories to continue to trend lower; besides, categories are also exhibiting weak growth expectations. Nevertheless, we see a desirable consolidated margin recovery and potential momentum from cost savings program, despite expecting a structural loss of volumes in K-C Professional. We value Kimberly-Clark shares on a blended methodology, using a DCF valuation and target multiples. Downside risks include rising input costs, loss of pricing power, and unsuccessful ESG innovation."

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