Wellington Shields Upgrades Clorox to “Buy” (CLX)
Wellington Shields reported on Monday that it has upgraded consumer and institutional products maker, The Clorox Company (CLX)
The firm has raised its rating for CLX from “Hold” to “Buy,” and has increased the company’s price target to $95. This price target suggests a 12% upside to the stock’s current price of $83.65.
An analyst from the firm commented, “we have raised our outlook for CLX, moving the price target up to 95 and the rating back to a Buy. We believe that the top line momentum, improving margins and cash flow, and better market conditions, leave the company with room to beat expectations, improve its long term growth assumptions, and enjoy a higher valuation as a result. Using a FY14 EPS assumption of 4.75 and an estimated forward PE of 20 brings us a new price target of 95. Clorox seems to be charging ahead on all cylinders and we think the continuing positive business momentum should lead to higher valuation for the shares.”
Clorox shares were mostly flat during Monday morning trading. The stock has increased 22% in the past year.
The Bottom Line
Shares of The Clorox Company (CLX) have a 3.06% yield, based on Monday morning’s price of $83.59.
The Clorox Company (CLX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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