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Barclays Cuts Kimberly-Clark Price Target to $99 on Rising Cost Pressures

The lower target signals concern that higher input costs are squeezing profit margins.

Overview

  • Barclays reduced its Kimberly-Clark price target to $99 and kept an Equal Weight rating, citing growing caution over higher input costs.
  • Shares have fallen toward a roughly 12-year low, pushing the dividend yield to 5.3% after decades of uninterrupted annual raises.
  • Free cash flow narrowed after about $200 million of extra input costs in fiscal 2025, much of it tied to tariffs that raised materials expenses.
  • Management projects margin improvement in the second half of 2026 and aims for at least 40% gross margins by the end of the decade.
  • Kimberly-Clark said a fire at a third-party distribution center in Ontario, California caused no injuries and falls under its insurance coverage.