Buy Rating Affirmed: Kimberly-Clark Surpasses Q1 Expectations with Strong Sales and Strategic Initiatives

Goldman Sachs analyst Bonnie Herzog has reiterated their bullish stance on KMB stock, giving a Buy rating on April 8.

Bonnie Herzog has given his Buy rating due to a combination of factors involving Kimberly-Clark’s first quarter performance which surpassed expectations and showed promising signs for future growth. Herzog notes that the company’s organic sales beat estimates, largely driven by higher pricing strategies, particularly in hyperinflationary markets, and impressive volume and mix gains, especially in the Personal Care segment. The early and unexpected volume growth contributed to stronger gross margins, better earnings before interest and taxes (EBIT), and an earnings per share (EPS) beat, leading management to raise its full year outlook.
Furthermore, Herzog remains optimistic about Kimberly-Clark’s strategic initiatives aimed at driving significant changes in performance and establishing a long-term financial strategy. The strong first quarter results are seen as a positive step towards the company’s transformation. With an improved fundamental outlook and the stock trading at a considerable discount compared to its peers in the Household and Personal Care (HPC) industry, the risk/reward profile is considered favorable, reinforcing the Buy recommendation.

Herzog covers the Consumer Defensive sector, focusing on stocks such as Philip Morris, Kimberly Clark, and Molson Coors. According to TipRanks, Herzog has an average return of 3.0% and a 56.69% success rate on recommended stocks.

In another report released on April 8, Piper Sandler also maintained a Buy rating on the stock with a $152.00 price target.

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Kimberly Clark (KMB) Company Description:

Founded in 1872, Texas-based Kimberly-Clark Corp. manufactures and markets products made from natural or synthetic fibers. It operates through three segments: Personal Care, Consumer Tissue, and K-C Professional (KCP). The company’s iconic brands include Depend, Huggies, Kleenex, Kotex, and Scott.