Clorox (CLX): Exploring Valuation After Analysts Cut Targets and Flag Cautious Outlooks

A series of updates from leading financial institutions has placed Clorox (CLX) in the spotlight. JP Morgan, BofA Securities, Citigroup, and UBS moved to trim their price targets and highlight cautious outlooks.

See our latest analysis for Clorox.

Clorox’s share price has struggled to find its footing this year, down nearly 26% year-to-date as market sentiment grows more cautious and sector headwinds persist. Short-term momentum has faded despite steady fundamentals, and its one-year total shareholder return sits at -22.5%, making long-term performance notably weak compared to peers.

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With analysts revising price targets downward and warning of further headwinds, is Clorox’s lackluster performance an indication that more challenges are ahead? Or does it open the door for a potential buying opportunity if the worst is priced in?

Most Popular Narrative: 8.5% Undervalued

Clorox’s most widely followed narrative suggests its fair value sits above today’s trading price, with analysts weighing operational reforms against persistent headwinds.

The full-scale implementation of a modern ERP system is expected to drive long-term operational efficiencies, improving supply chain visibility, speeding innovation cycles, and reducing structural costs. This should support margin expansion and sustained earnings growth once short-term transition noise normalizes.

Read the complete narrative.

Want to know the pivotal ingredient behind this price target? These analysts are betting on tech transformation and significant cost savings. Find out what bold financial projections could justify a premium multiple in a low-growth industry. The details may surprise you.

Result: Fair Value of $131.24 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued sluggish sales growth and intensifying price competition from private labels could challenge Clorox’s recovery. These factors demand close attention in upcoming quarters.

Find out about the key risks to this Clorox narrative.

Build Your Own Clorox Narrative

If you see the story differently or want to dig into the data yourself, creating a personalized narrative takes just a few minutes. Do it your way

A great starting point for your Clorox research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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