RBC Capital provided its outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the company’s upcoming Q4/22 results, expecting organic growth of 3.7%, below the Street estimate of 4.8%.
The analysts are approximately in line with the Street estimates on adjusted EPS ($1.50 vs. $1.51), gross margin (approximately 32%), and EBIT margin (approximately 14.5%).
The analysts expect this quarter to be negatively impacted by market contraction, consistently high pulp prices (although recent prices may signal signs of easing), and FX headwinds.
Given unfavorable market dynamics, continued investment into brands, and uncertainty around input costs, the analysts expect a conservative 2023 guide. The analysts reiterated their Sector Perform rating and $118 price target.


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