Barclays Raises Clorox (CLX) Target to $109 but Keeps Underweight on Fundamentals Concerns

Core Viewpoint - The Clorox Company (NYSE:CLX) is facing challenges due to a transition period involving a major ERP system upgrade, which has impacted its stock performance and sales expectations [2][3][4]. Company Overview - Clorox is a global manufacturer of consumer and professional products, operating in four main segments: Health and Wellness, Household, Lifestyle, and International [5]. Stock Performance and Analyst Ratings - Clorox's stock has declined over 45% in the past five years, and Barclays has raised its price target to $109 from $108 while maintaining an Underweight rating due to concerns over fundamentals [2][3]. - The recent enthusiasm in Clorox shares is attributed to a "flight to safety" rather than improving fundamentals, with worries about the company's outlook and potential sector headwinds [2][3]. Sales and Profit Expectations - The company anticipates a decline in organic sales growth of 5% to 9% for the fiscal year, with a significant impact from the ERP transition [4]. - If the ERP disruption is excluded, organic sales are expected to be roughly flat, indicating pressure on profit expectations as well [4].