Carl Icahn Discloses 9% Stake In Clorox

JP Morgan has published a research report on The Clorox Company

after investor Carl Icahn disclosed on Friday his current stake in the company, which accounts for around ~9% of the company, or 12.5 million shares. In the report, JP Morgan writes "Mr. Icahn's filing says that he likes Clorox's exposure to “mega-trends”, and their plan to buy back almost 10% of the company by the end of the fiscal year. We do point out that at the very least, this filing is making Clorox's buyback more expensive. Despite recent business weakness, CLX is poised for a better calendar '11. Topline should accelerate behind easier comparisons, and more new products. The buy-back should drive EPS growth into the low teens over the next 18 months." JP Morgan maintains its Overweight rating and $70 price target. The Clorox Company closed Friday at $71.26.