UPDATE: Credit Suisse Downgrades The Clorox Co. to Neutral on Limited Further Upside
In a report published Wednesday, Credit Suisse analyst Michael Steib downgraded the rating on The Clorox Co. (NYSE: CLX) from Outperform to Neutral, but reiterated the $87.00 price target.
In the report, Steib noted, “We slightly lower our FY13-14 EPS estimates to $4.32/$4.63/$5.04 (from $4.35/$4.69/$5.05) and essentially view the stock as fairly valued for now. Due to its defensive profile, strong execution and attractive dividend yield, CLX shares have strongly outperformed during the past 6 months. Although we continue to believe that EPS growth will accelerate sequentially in FY14, we think that this is now better understood and reflected in both valuation and consensus expectations. The company continues to execute well as organic growth trends remain challenging, due to the ongoing weak consumer environment and competitive dynamics from private label. While we are comfortable with our 3-4% longer-term LFL sales growth estimate, we think surprises to the upside are unlikely going forward for the time being.”
The Clorox Co. closed on Tuesday at $88.11.
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Tags: Credit Suisse