Citigroup has adjusted its outlook for Clorox (CLX, Financial), reducing the price target from $165 to $150 while maintaining a Neutral rating on the stock. This adjustment comes as part of a first-quarter earnings preview within the beverages and household and personal care sectors. According to Citigroup, the sector faces a challenging setup heading into the first quarter, with reports of sluggish market commentary across the U.S., Europe, and emerging markets, along with guidance heavily dependent on the latter half of the year and potential tariff risks.
Despite the broader industry challenges, Citigroup favors companies with a clear insight into immediate market trends and those offering unique growth opportunities. Within the upcoming earnings reports, the firm expresses optimism towards Keurig Dr Pepper (KDP), Boston Beer (SAM), and Church & Dwight (CHD). However, it remains cautious concerning Procter & Gamble (PG), Colgate-Palmolive (CL), and Coca-Cola (KO), suggesting a varied outlook across the sector.
