Analysts Set Kimberly-Clark Price Target at $137 Amid Mixed Ratings

Kimberly-Clark Co. (NYSE: KMB) has received an average rating of “Hold” from nine brokerage firms, as reported by Marketbeat Ratings. Analysts’ opinions are divided, with one giving a sell rating, five issuing holds, and three recommending a buy. The average target price for the next twelve months stands at $137.00, reflecting a cautious outlook amid recent market fluctuations.

Several brokerages have recently updated their assessments of Kimberly-Clark. On October 1, Barclays lowered its price target from $139.00 to $131.00, maintaining an “equal weight” rating. Following this, on October 8, UBS Group adjusted its target from $140.00 to $130.00 and also assigned a “neutral” rating. Additionally, Evercore ISI changed its target from $155.00 to $150.00 while keeping an “outperform” rating as of September 22. Wells Fargo & Company and JPMorgan Chase & Co. have similarly revised their targets to $130.00 and $127.00, respectively, both maintaining neutral ratings.

In its latest earnings report on August 1, Kimberly-Clark noted earnings per share (EPS) of $1.92, exceeding the consensus estimate of $1.67 by $0.25. Revenue for the quarter was reported at $4.16 billion, falling short of analysts’ expectations of $4.85 billion. The company experienced a return on equity of 201.43% and a net margin of 12.69%, although quarterly revenue declined by 1.6% compared to the previous year. In the same quarter last year, the company recorded an EPS of $1.96. Analysts are projecting an average EPS of $7.50 for the current fiscal year.

In a recent development, Kimberly-Clark declared a quarterly dividend of $1.26 per share, which was paid on October 2. Shareholders on record as of September 5 received the dividend, resulting in an annualized payout of $5.04 and a yield of 4.2%. The company’s payout ratio currently stands at 69.42%, indicating a stable return to shareholders.

Institutional investors continue to show interest in Kimberly-Clark, with several firms adjusting their stakes. For instance, Cornerstone Wealth Management LLC increased its holdings by 1.9% in the first quarter, bringing its total shares to 4,056, valued at approximately $577,000. Similarly, Empirical Finance LLC raised its position by 0.6% in the second quarter, now owning 11,876 shares worth $1.53 million. Other firms, including Hoge Financial Services LLC and Nwam LLC, also reported slight increases in their positions during the first quarter.

As it stands, institutional investors collectively own approximately 76.29% of Kimberly-Clark’s stock, reflecting strong confidence in the company’s long-term viability.

Kimberly-Clark Corporation operates across three primary segments: Personal Care, Consumer Tissue, and K-C Professional. The company specializes in manufacturing a range of products including diapers, feminine care items, and other personal care goods under well-known brands such as Huggies, Kotex, and Depend.

As market dynamics continue to evolve, stakeholders will be closely monitoring Kimberly-Clark’s performance and strategic decisions in the coming months.