Update shared on 17 Oct 2025
Fair value Decreased 1.92%Personal Care And Hygiene Demand Will Yield Enduring Global Opportunity
Kimberly-Clark's analyst price target has been revised downward by $2.71 to $138.00. Analysts cite muted and decelerating growth in certain personal care segments as a key factor for the adjustment.
Analyst Commentary
Recent Street research highlights both potential positives and concerns regarding Kimberly-Clark's outlook, particularly following the downward adjustment in the price target.
Bullish Takeaways
- Bullish analysts note the company’s continued leadership in the personal care sector, which could support stable long-term valuations.
- There is recognition of ongoing cost optimization efforts that may help protect margins amid slower revenue growth.
- Some believe Kimberly-Clark’s diversified product portfolio could mitigate headwinds in underperforming segments.
Bearish Takeaways
- Bearish analysts point to muted and decelerating growth trends in certain personal care categories as a risk to revenue expansion.
- Concerns remain regarding the company’s ability to accelerate top-line growth after lackluster Q2 results.
- Slower category growth has prompted adjustments to risk/reward expectations and introduces caution around valuation at current levels.
- Forecasts now factor in more modest execution on guidance, suggesting limited near-term upside for the shares.
What's in the News
- Kimberly-Clark announced a three-year, $28.7 million philanthropic initiative to support women’s health. The company is expanding partnerships with Baby2Baby, Plan International, Project HOPE, and UNICEF to reach 24 million women and girls globally. Programs will focus on menstrual and maternal care, education, and access to essential supplies. (Key Developments)
- The company provided 2025 financial guidance and anticipates that organic sales will outpace peers in its categories and countries. It also noted negative impacts to reported results from currency translation and business divestitures. (Key Developments)
- Kimberly-Clark completed another tranche of its share buyback program, repurchasing 457,891 shares for $60.71 million. This brings total buybacks to 2.69% of shares since 2021. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target: Revised downward from $140.71 to $138.00. This reflects a modest decrease in fair value estimates.
- Discount Rate: Remains unchanged at 6.78 percent, indicating no adjustment to risk or capital cost assumptions.
- Revenue Growth: The projected decline has deepened, with growth estimates moving from -3.68 percent to -3.96 percent.
- Net Profit Margin: Marginally improved from 13.86 percent to 13.87 percent. This suggests slight cost or efficiency gains.
- Future P/E: Lowered from 22.87x to 22.61x, pointing to a slightly less optimistic outlook on future earnings multiples.
Disclaimer
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