On Wednesday, Jefferies updated its outlook on Clorox shares (NYSE:CLX), increasing the price target to $147 from the previous $145 while maintaining a Buy rating. The adjustment follows Clorox's mixed fiscal third-quarter results, which saw the company miss revenue expectations but exceed profit forecasts with better-than-anticipated margins.
The company reported earnings per share that were 34 cents above expectations, a significant beat that has led to an upward revision of its guidance. This revision surpasses the forecasts set before the company faced a cyber incident. According to the firm's assessment, Clorox's recovery from this event is expected to be largely complete by the end of the year, potentially leading to a more stable fiscal year 2025.
Despite the optimism surrounding the company’s higher reinvestment and the potential for continued margin expansion, Jefferies noted that Clorox is still in the early stages of proving the durability of its profit and loss statement. The firm's commentary suggests a cautious but positive outlook on the company's financial health moving forward.
Investors and stakeholders of Clorox will likely monitor the company’s performance closely in the coming months, as it aims to solidify its recovery and demonstrate the sustainability of its financial growth. The updated price target reflects a modest increase but indicates confidence in the company's trajectory.
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