On Monday, Clorox (NYSE:CLX) saw its price target increase to $171.00 from $153.00 by DA Davidson, while the firm kept a Neutral rating on the stock. This adjustment follows Clorox's first-quarter earnings report for fiscal year 2025, which outperformed expectations.
The company reported a significant earnings per share (EPS) beat of $0.47 compared to consensus estimates, along with a robust 31% growth in organic sales. This growth comes as a recovery from the previous year's quarter, which was negatively affected by a cyberattack.
Additionally, Clorox benefited from retailers ordering flu season products earlier than usual, a move that shifted sales into the first quarter from the second quarter of fiscal 2025.
Clorox's market share has rebounded, reaching levels seen before the cyberattack. In light of the recent performance, the company has modestly increased its full-year 2025 EPS guidance by $0.10. DA Davidson responded to these developments by revising their fiscal year 2025 organic sales growth estimate for Clorox to 5% from the previously expected 4%.
The firm has also begun forecasting for fiscal year 2027, advancing their financial models by a year. The new price target of $171 is based on a multiple of 25 times the estimated calendar year 2026 EPS of $6.83. This revision reflects the analyst's updated expectations following Clorox's latest financial results and market position.
In other recent news, the company has effectively managed last year's cyber issue, with Jefferies maintaining a Buy rating on Clorox stock and raising the share price target slightly to $188 from $187. Notably, Clorox has fully recovered its market share post the August 2023 cyberattack, demonstrating resilience and agility.
However, the company projects a low-teens sales decrease for the second quarter due to volume pull-forward. For the latter half of the year, Clorox anticipates organic growth to be between 3% to 5%. The company's promotional environment has returned to pre-COVID levels, with strategic promotional spending planned.
Jefferies has recognized Clorox's proactive stance in its business operations, particularly the decision to increase its guidance after the first-quarter earnings. This move signals the company's confidence and is reflected in the decision to maintain the Buy rating and adjust the price target upward.
These are recent developments and further updates are expected to be provided in the future.
InvestingPro Insights
Clorox's recent performance and DA Davidson's price target increase are further supported by key metrics and insights from InvestingPro. The company's market cap stands at $20.19 billion, reflecting its significant presence in the consumer goods sector. Notably, Clorox has demonstrated strong financial health, with revenue growing by 6.17% over the last twelve months to $7.47 billion.
InvestingPro Tips highlight Clorox's commitment to shareholder value, having raised its dividend for 48 consecutive years. This long-standing dividend policy aligns with the company's stable business model and consistent profitability. Additionally, Clorox operates with a moderate level of debt, which provides financial flexibility in its operations and growth initiatives.
The stock's recent performance has been particularly impressive, with a 15.05% price total return over the past three months. This aligns with DA Davidson's positive outlook and increased price target. Investors seeking more comprehensive analysis can access 12 additional InvestingPro Tips for Clorox, offering deeper insights into the company's financial health and market position.
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