Credit Suisse Downgrades This Cleaning Products Manufacturer - Read Why

by Shivani Kumaresan, Benzinga Staff Writer

January 26, 2022 2:27 PM | 1 min read |

Credit Suisse analyst Kaumil Gajrawala downgraded Clorox Co CLX to Underperform from Neutral with a $160 price target.
The analyst thinks a large portion of Clorox's growth during the first phase of the pandemic came from categories that are now declining.
If consumption continues to revert toward pre-pandemic levels, $500 million in company sales may still be at risk, Gajrawala notes.
The analyst also believes margins may take longer to recover due to uncertainty around pricing and elasticities.
If consumption weakens further amid high input cost inflation, a drop in volumes could result in material de-leverage to margins, the analyst adds.
Price Action: CLX shares are trading lower by 4.84% at $166.08 on the last check Wednesday.