Kimberly-Clark's average analyst price target has been reduced by $1.36 to $140.71, as analysts point to muted growth prospects in parts of the personal care sector. However, there is ongoing confidence in the company's long-term positioning.
Analyst Commentary
Analyst sentiment on Kimberly-Clark remains mixed, reflecting both confidence in the company’s long-term strategies and caution regarding near-term industry challenges. Price targets and ratings have been adjusted to reflect changing expectations around sector growth and company performance.
Bullish Takeaways- Bullish analysts highlight Kimberly-Clark’s exposure to premium personal care categories. This positions the company favorably for sustained long-term growth.
- The company’s valuation is seen as undemanding by some analysts, which suggests that there is potential upside as earnings and profitability improve over time.
- Upside to 2025 earnings guidance is anticipated, particularly if favorable tariff dynamics in China are realized. This could benefit the company’s bottom line.
- Coverage initiations with positive ratings underscore continued conviction in the company’s market position and operational execution.
- Bearish analysts express concerns over muted and decelerating growth trends within parts of the personal care sector. These trends have led to recent downward adjustments in price targets.
- Short-term expectations are tempered by analysts who see less robust organic growth following recent Q2 financial reports.
- Some analysts have chosen to maintain more cautious or neutral ratings, reflecting uncertainty about the pace of recovery and market dynamics in select product categories.
What's in the News
- The company completed a share repurchase tranche between April 1 and June 30, 2025, buying back 457,891 shares for $60.71 million. Total repurchases under the January 2021 buyback now stand at 9,045,247 shares for $1.23 billion (Key Developments).
- The company issued 2025 financial guidance indicating that organic sales growth is expected to exceed the weighted average growth rate of the markets served, which is approximately 2 percent (Key Developments).
- Reported net sales and earnings for 2025 are forecast to face negative impacts from currency translation, the PPE divestiture, and the exit of the US private label diaper business (Key Developments).
Valuation Changes
- Fair Value has decreased slightly, moving from $142.07 to $140.71.
- Discount Rate remains unchanged at 6.78 percent.
- Revenue Growth expectations have decreased marginally, from negative 3.63 percent to negative 3.68 percent.
- Net Profit Margin has improved, rising from 13.50 percent to 13.86 percent.
- Future P/E has declined, falling from 23.66 times to 22.87 times.
Disclaimer
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