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Clorox rated Hold with 8% upside amid tight dividend coverage and risks from Purell acquisition.

Analyst Insights
29 Oct 2026, 16:36 WIB
Seeking Alpha
View Source
Neutral
Clorox rated Hold with 8% upside amid tight dividend coverage and risks from Purell acquisition.

Clorox is rated Hold with an expected 8% upside to a fair value range of $91-$96 and a dividend yield of 5.8%. The company faces tight dividend coverage with an 83-88% payout ratio and increased leverage following its debt-funded acquisition of Purell. Fiscal Q1 2027 growth is expected to appear strong due to weak prior-year comparisons, but organic sales are forecasted to be near flat. Key risks include potential guidance cuts, ongoing inflation pressures, and a CEO transition, while upside depends on margin recovery and stable outlook updates.

Clorox shares trade at USD 88.27 on Pluang as of Oct 29, 2026 20:52 WIB, near the lower end of its 52-week range between USD 80.41 and USD 127.16. The stock's dividend yield of 5.76% closely matches the article's cited 5.8%, highlighting its appeal for income-focused investors despite the payout ratio concerns. Pluang data shows a positive 1-day change of 1.65%, with all orders currently on the buy side, suggesting steady interest in the stock.

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