Jefferies has lowered its 12-month price objective on Clorox Co. to $151.00 from $152.00 while leaving its Buy recommendation intact, according to the research note. The brokerage described the company as finishing "decently" after a challenging first half, but it underscored that Clorox "still has a lot to prove in the 2H."
In its assessment, Jefferies highlighted that the success of recent innovation efforts and capital allocations must be demonstrated in the marketplace before the firm is confident Clorox can reach the low end of its guidance. The note emphasized that these initiatives need to show they can lift market share amid a competitive landscape. The firm summed up its stance as cautiously optimistic: "We think they can, but we’re watching closely (it’s no lay-up)."
Jefferies also pointed to improving profit-and-loss visibility extending into 2027. The firm noted that January marked the completion of the final phase of a multi-year enterprise resource planning transformation. With that implementation now behind it, Clorox’s management is shifting attention to exploiting the platform and driving growth.
Those operational developments come alongside the company’s second-quarter financial disclosure, which delivered mixed signals to investors. Clorox reported earnings per share of $1.39, below the expected $1.44. Conversely, revenue for the quarter was $1.67 billion, topping the consensus estimate of $1.64 billion. The revenue beat and the EPS miss together shaped market reaction to the results.
Analysts had been tracking the quarterly numbers closely, and the figures were the primary focus during the company’s earnings call. While the top-line performance outpaced forecasts, the shortfall on earnings per share was notable and affected investor sentiment. The firm’s transition from systems implementation to leveraging those systems for growth was highlighted as an important factor going forward.
Overall, Jefferies maintained a Buy rating but trimmed the price target slightly, reflecting a posture that blends cautious optimism with scrutiny of Clorox’s ability to convert recent investments into sustained market-share gains and margin improvement.