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BofA Cuts Kimberly-Clark (KMB) Target on Lower Multiple Applied to 2027 Earnings
Yahoo Finance· 2026-01-30 22:16
Group 1 - Kimberly-Clark Corporation (NASDAQ:KMB) is recognized as one of the 14 High Yield Dividend Stocks with Sustainable Payouts [1] - BofA analyst Anna Lizzul has reduced the price target for Kimberly-Clark from $148 to $130 while maintaining a Buy rating, citing a lower P/E multiple applied to the company's 2027 EPS estimate due to sector-wide valuation compression [2] - The company reported quarterly profits exceeding expectations, supported by effective cost controls and steady demand for core products like Huggies diapers and Kleenex tissues across major markets [3] Group 2 - In recent years, Kimberly-Clark has implemented job cuts and exited lower-margin businesses, which has helped protect profit margins while expanding affordable product ranges to attract cost-conscious consumers [4] - The company is transforming into a global consumer health entity following its $40 billion acquisition of Kenvue, the maker of Tylenol, which is expected to close by year-end [5] - In the fourth quarter, Kimberly-Clark experienced a 1.1% decline in prices, while organic sales increased by 2.1%, driven by a 2.7% rise in overall volumes of essential products [6]