Kimberly-Clark (KMB, Financial) is in the final stages of negotiating the sale of its international tissue business, which carries an estimated value of $4 billion. Three major industry players—Royal Golden Eagle, Asia Pulp & Paper, and Suzano (SUZ)—are competing in the final bidding round.
These companies are preparing to submit their definitive offers by the middle of May. The sale is highly anticipated by market analysts, as it could significantly impact the competitive landscape in the global tissue market.
The outcome of this sale is expected to provide Kimberly-Clark with substantial resources to focus on its core markets and strategic priorities, while potentially allowing the winning bidder to expand its footprint and capabilities in the international tissue sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Kimberly-Clark Corp (KMB, Financial) is $144.17 with a high estimate of $162.00 and a low estimate of $118.00. The average target implies an upside of 8.07% from the current price of $133.40. More detailed estimate data can be found on the Kimberly-Clark Corp (KMB) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Kimberly-Clark Corp's (KMB, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kimberly-Clark Corp (KMB, Financial) in one year is $129.70, suggesting a downside of 2.77% from the current price of $133.4. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kimberly-Clark Corp (KMB) Summary page.
KMB Key Business Developments
Release Date: April 22, 2025
- SG&A Savings: On track to generate approximately $200 million in the next few years.
- Volume Plus Mix: Solid performance indicating resilient demand in categories.
- Margin Optimization: Strong progress in optimizing margins through integrated margin management.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kimberly-Clark Corp (KMB, Financial) is making solid progress across its Powering Care strategy, focusing on innovation and consumer value propositions.
- The company is on track to generate approximately $200 million in SG&A savings over the next few years.
- Kimberly-Clark Corp (KMB) is maintaining its investment in innovation and marketing despite cost pressures, ensuring long-term growth.
- The company has a strong pipeline of new products and go-to-market activations, expected to drive volume and mix growth.
- Kimberly-Clark Corp (KMB) is leveraging its integrated margin management approach to optimize margins and deliver world-class productivity.
Negative Points
- The company faced a softer-than-expected top line in the first quarter, trailing behind scanner data results in North America.
- Kimberly-Clark Corp (KMB) is dealing with a significant $300 million impact from tariffs, affecting its cost structure.
- The company is experiencing lower year-on-year North America private label shipments, impacting organic sales.
- There is a need for strategic pricing investments in various markets due to a highly competitive environment.
- Kimberly-Clark Corp (KMB) is navigating a rapidly evolving external environment, which presents challenges in maintaining its growth trajectory.
