On Friday, RBC Capital maintained its optimistic stance on Kimberly Clark Corp (NYSE:KMB), reiterating an Outperform rating and a price target of $165.00. The firm expressed confidence that the company's quarterly results would align with consensus estimates and the company's own projections, potentially leaning towards a higher earnings per share (EPS).
The analysis suggests that there could be better-than-expected performance in the Personal Care segment, which may exceed consensus predictions. However, there is a possibility that the Consumer Tissue division might not perform as well as anticipated.
RBC Capital has recently upgraded Kimberly Clark based on the company's new strategy, which they believe in. The firm is looking forward to hearing updates about Kimberly Clark's advancements in improving its supply chain and achieving savings in selling, general and administrative expenses (SG&A).
The price target set by RBC Capital indicates their confidence in Kimberly Clark's strategic direction and operational improvements. The company's stock performance and future outlook remain a point of interest for investors following the firm's analysis and rating.
In other recent news, Kimberly Clark has been making headlines with a series of significant developments.
The company's shares have been upgraded by both BofA Securities and RBC Capital. BofA revised its stance from Underperform to Buy, raising the price target to $160, while RBC Capital recently upgraded the stock from Sector Perform to Outperform, increasing the price target to $165. These upgrades reflect analysts' optimism about Kimberly Clark's long-term improvement and growth orientation.
HSBC has also raised the stock price target for Kimberly Clark to $150, maintaining a Hold rating on the stock.
Kimberly Clark has also announced Patricia Corsi as the new Chief Growth Officer, effective July 1, 2024. Corsi, known for her successful tenure at Bayer (OTC:BAYRY) Consumer Health, will replace Alison Lewis, who is retiring after a 35-year career in the consumer products sector. This leadership transition is part of the company's strategic transformation and growth initiatives.
Furthermore, Kimberly Clark has continued its 90-year tradition of dividend payments, marking the 90th consecutive year of dividend payouts and the 52nd year of dividend increases. This adjustment is based on a projected margin recovery and benefits from a cost savings program.
InvestingPro Insights
In light of RBC Capital's positive outlook on Kimberly Clark Corp (NYSE:KMB), recent data from InvestingPro further supports the company's strong financial standing. With a market capitalization of $48.51 billion and a robust Price/Earnings (P/E) ratio of 26.49, Kimberly Clark demonstrates significant market presence and investor confidence. Notably, the company's Adjusted P/E ratio for the last twelve months as of Q1 2024 stands at a lower 20.48, indicating potential undervaluation compared to the broader market.
InvestingPro Tips highlight that Kimberly Clark has not only raised its dividend for an impressive 51 consecutive years but also has a track record of maintaining dividend payments for 54 consecutive years. This consistency showcases the company's commitment to returning value to shareholders and its stable financial performance. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting that Kimberly Clark's financial prospects may be even brighter than currently anticipated. For investors looking to delve deeper into Kimberly Clark's financials, InvestingPro offers additional tips and metrics on their platform, which can be accessed at https://www.investing.com/pro/KMB. There are 9 more InvestingPro Tips available for those interested in a comprehensive analysis of the company's financial health.
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