Market Overview

Macquarie Turns Bullish On Kimberly Clark: 'We Are More Confident In The Sales Growth Outlook'

Macquarie Turns Bullish On Kimberly Clark: 'We Are More Confident In The Sales Growth Outlook'

Kimberly Clark Corp (NYSE: KMB) received an upgrade Tuesday from Macquarie on the basis of a stronger earnings outlook.

The Analyst 

Caroline Levy upgraded Kimberly Clark from Neutral to Outperform and raised the price target from $102 to $142.

The Thesis

Kimberly Clark’s price/mix is coming in stronger than expected, driving margin improvement, Levy said in the upgrade note. (See her track record here.) 

The company’s cost environment is also improving, and efficiency programs are driving savings, the analyst said. 

Kimberly Clark has posted two quarters of 3-percent organic sales growth, and in the first quarter of 2019 the company posted a "significant" EBIT margin beat, Levy said. 

“Price/mix is coming in better than expected YTD, and given much easier sales comparisons for the rest of the year, a solid innovation pipeline and effective marketing/higher adspend (especially on digital), we are more confident in the sales growth outlook for KMB." 

The analyst is projecting 4-percent organic sales growth in 2019, largely driven by price/mix. Emerging markets are also a bright spot for Kimberly Clark, growing 7 percent in the first quarter, an encouraging start to the year, the analyst said. 

Macquarie's new $142 price target represents 13.5x EV/EBITDA, and Levy said she views this valuation as reasonable even when considering the company’s greater exposure to commodity price changes.

Macquarie raised its 2019 EPS estimate from $6.50 to $6.75 and its 2020 estimate from $6.93 to $7.22.

Price Action

Kimberly Clark shares were down 3.43 percent at $125.76 at the time of publication Tuesday. 

Related Links:

Cramer Questions Why Apple Trades At Valuation Discount To Procter & Gamble

Jim Cramer Weighs In On Allergan, Procter & Gamble And More

Latest Ratings for KMB

Oct 2019MaintainsMarket Perform
Oct 2019MaintainsEqual-Weight
Sep 2019UpgradesNeutralBuy

View More Analyst Ratings for KMB
View the Latest Analyst Ratings

Posted-In: Caroline Levy MacquarieAnalyst Color News Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (KMB)

View Comments and Join the Discussion!

Latest Ratings

YEXTMorgan StanleyMaintains15.0
WKMorgan StanleyMaintains42.0
RAMPMorgan StanleyMaintains58.0
PDMorgan StanleyMaintains34.0
HTHTDaiwa CapitalDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

After Chilly Winter, Homebuilders To Share Earnings With High Hopes Ahead

Harvest Health & Recreation's Q4 Revenue Jumps 135% Year-Over-Year