Kimberly-Clark (KMB) has limited upside until stronger visibility on performance metrics is achieved and investor sentiment remains negative due to year-to-date underperformance, UBS Securities said in an earnings preview emailed Friday.
The company's Q4 earnings are scheduled for Jan. 28.
The firm said that headwinds from private-label divestitures and foreign exchange impacts are expected to offset the company's growth further in 2025 leading to a projected sales decline of 4.5% year over year, while margins will expand due to productivity gains.
Kimberly-Clark's ability to show sequential improvement in organic revenue growth is a critical point for investors and there is speculation about whether retailer-driven timing benefits, similar to those seen by Procter & Gamble (PG) in its Family Care business, could result in better-than-expected performance, but this remains uncertain, UBS added.
The brokerage has a neutral rating on Kimberly-Clark's stock with a price target of $132.
Price: 128.09, Change: +1.06, Percent Change: +0.84
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。