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UPDATE: Raymond James Starts Clorox (CLX) at Outperform

July 12, 2022 4:25 PM EDT
Get Alerts CLX Hot Sheet
Price: $150.68 +0.55%

Rating Summary:
    4 Buy, 9 Hold, 10 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - July 13, 2022 4:21 AM EDT)

Raymond James analyst Olivia Tong initiates coverage on Clorox (NYSE: CLX) with a Outperform rating and a price target of $160.00.

The analyst comments "We are initiating coverage of Clorox Co. (CLX) with a non-consensus Outperform rating and a $160 PT. Market sentiment has been negative on CLX post-pandemic, and rightfully so, but from here, we think that even with its challenges, we view risk/reward as attractive and see more potential for upside than downside. With CLX soon finishing a difficult FY22 during which top-line growth trailed peers and gross margins are expected to be down roughly 800 bp, our view is that CLX has less downside risk relative to many of its peers over the next 12 months. Commodity inflation is moderating, which relieves a significant pressure point for CLX as it rebuilds gross margins from 20+ year lows. In addition, the DXY currency index is at 20-year highs and with CLX generating 84% of its sales in the U.S., it is shielded from the FX-related volatility hitting its multinational peers. The two biggest risks to our positive view are 1) that private label share is beginning to rebound in HPC and CLX has exposure in bleach, bags, litter, charcoal and water filtration (low 30s as a % of sales), and 2) valuation is reasonable, but meaningful re-rating is not core to our thesis."

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 $141.80 yesterday.


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