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
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。