Wells Fargo Cuts Clorox (CLX) Price Target as 2026 Staples Models Are Updated

On January 5, Wells Fargo chopped its terms people connected The Clorox Company (NYSE:CLX) to $108 from $117 and kept an Equal Weight standing connected the stock. The determination came arsenic Wells updated its models crossed Beverage, Food, and Home and Personal Care and rolled those assumptions into 2026.

Back successful November, Clorox delivered a stronger-than-expected archetypal quarter. Demand for cleaning products remained beardown and drove results up of forecasts. The institution reported adjusted net of $0.85 per share, beating estimates of $0.79, based connected LSEG data.

Revenue dropped 19% to $1.43 billion, but inactive came successful supra expectations of $1.40 billion. Management had already flagged little shipments for the quarter, arsenic retailers pulled guardant inventory up of the company’s strategy upgrade. That dynamic showed up successful the numbers, but it was not a surprise.

The Clorox Company (NYSE:CLX) maintained its full-year outlook. The institution continues to expect income to autumn betwixt 6% and 10%, with adjusted net projected astatine $5.95 to $6.30 per share. From an income standpoint, Clorox remains a coagulated dividend payer. The dividend payout ratio sits astir 72% of adjacent year’s net estimates. That level looks manageable, particularly with a beardown equilibrium expanse providing a cushion. Management is aiming for 3% to 5% yearly income growth, which should enactment dependable dividend maturation for a concern with a precocious ROIC.

The Clorox Company (NYSE:CLX) operates arsenic a multinational shaper and marketer of user and nonrecreational products.

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