Kimberly-Clark: Jefferies still says 'buy', but cuts TP

(CercleFinance.com) - Jefferies reinstates its "buy" rating on the shares of consumer product group Kimberly-Clark, although has cut its target price for them to 150 dollars (vs.
160 dollars), after the broker reduced its 2021-23 estimates following the hygiene products group's quarterly results.

"The qtr was disappointing and transitory headwinds (costs, supply chain) worse than lowered expectations," the broker acknowledged, but said market share momentum was "encouraging" and pointed to additional cost savings.

Jefferies also believes that the Kimberly-Clark stock is trading at an attractive valuation at less than 17.5x EPS, which represents a discount of about 25% relative to its peers - against its historical average of 20%.


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