Kimberly Clark stock price target lowered to $150 by Evercore ISI

Evercore ISI lowered its price target for Kimberly-Clark (KMB) to $150 from $155, while maintaining an "Outperform" rating, citing reduced Q3 sales estimates due to North American market dynamics, though cost savings and pulp deflation are expected to stabilize EPS. The stock is trading near its 52-week low, below its 20-year trading band, amid U.S. market concerns and future dilution from the Suzano deal. Despite this, Evercore views the current price as a potential entry point, contrasting with recent Q2 2025 results that showed an EPS beat on strong volume growth, which prompted Goldman Sachs to raise its price target to $145 with a "Buy" rating.

Analysis

Kimberly-Clark (KMB) faces a bifurcated outlook from analysts, reflecting its mixed Q2 2025 financial results. Evercore ISI reduced its price target to $150, citing a lowered Q3 sales estimate to 1% growth due to North American pantry loading and marketing delays. This view is counterbalanced by Goldman Sachs, which raised its target to $145, emphasizing the company's strongest volume growth in five years at 5%. The company's recent earnings report highlights this conflict, showing a significant 16.36% EPS beat at $1.92, while simultaneously reporting a substantial 12.79% revenue miss at $4.16 billion. This divergence suggests effective cost management, with Evercore noting savings and pulp deflation as offsets, but also highlights a clear top-line challenge. Compounding investor uncertainty, the stock trades near its 52-week low and has broken its 20-year trading band, while the market awaits clarity on the $0.45 EPS dilution from the Suzano deal, which is not anticipated to close until mid-2026.

Key Decisions for Investors

• Investors should weigh the conflicting signals: the stock is trading near a 52-week low with recent strong EPS performance and volume growth, against a significant revenue miss and downgraded near-term sales forecasts.
• Monitor upcoming North American sales data closely, as this is the key variable determining whether the bearish outlook from Evercore ISI or the bullish case from Goldman Sachs prevails.
• For those considering a position, it is critical to factor in the long-term overhang from the Suzano deal, which introduces a $0.45 EPS dilution risk and will likely remain an unresolved factor until mid-2026.