Kimberly-Clark Shares Get a Lift as UBS Analyst Raises Price Target Following Solid Earnings

Consumer staples giant Kimberly-Clark (NASDAQ:KMB) received a modest vote of confidence from Wall Street this week, as UBS analyst Peter Grom lifted his price target on the stock following a quarterly earnings beat that highlighted the company's ongoing cost management and stable demand for its essential products.

In a research note dated January 28, Grom raised his 12-month price target to $110 from $107, while maintaining a 'Neutral' rating. He noted the company's core personal care business—encompassing brands like Huggies and Kleenex—remains on solid footing, though he sees the overhang from the pending $40 billion acquisition of Kenvue, the maker of Tylenol, as a persistent near-term factor.

The target adjustment came a day after Kimberly-Clark reported quarterly profits that exceeded analyst expectations. The Dallas-based firm credited tighter operational controls and consistent consumer spending on daily necessities across its key markets in North America and China for the performance.

"The results underscore a multi-year turnaround effort that's beginning to bear fruit," said market strategist Eleanor Vance. "By exiting low-margin segments like private-label diapers and doubling down on value-tier products within trusted brands, they're navigating inflationary pressures better than many peers."

This strategic pivot is part of a broader transformation. The planned Kenvue acquisition, expected to close by year-end, marks a decisive shift toward building a global consumer health portfolio, diversifying beyond its traditional personal care roots.

Analyst & Investor Commentary:

• Eleanor Vance, Market Strategist at ClearWater Advisors: "Kimberly-Clark is executing a textbook defensive playbook. In this economy, investors are rewarding companies that demonstrate pricing power and cost discipline. The raised target reflects recognition of that execution, even if the rating remains cautious."
• Marcus Thorne, Retail Analyst: "The focus on 'value-engineered' products is smart. It allows them to protect market share without fully diluting brand equity. However, the Kenvue integration is a massive undertaking. The real test will be their ability to manage that debt load and achieve promised synergies without stalling the core business."
• David Chen, Portfolio Manager: "A $3 target increase is a whisper, not a shout. It feels like analysts are just keeping pace with the stock's drift upward. Where's the bold vision? This feels like managing decline in the core business while hoping a mega-acquisition saves the day. I'd need to see more organic growth firepower to get excited."
• Rebecca Shaw, Long-term Shareholder: "As a dividend investor, I appreciate the stability. The quarterly beat and continued focus on margins support the reliable payout. The Kenvue move is a big swing, but if it brings higher-margin health products into the fold, it could secure the dividend's growth for the next decade."

While the company's restructuring and acquisition strategy unfolds, Kimberly-Clark continues to be highlighted by some screeners for its dividend profile, recently being named among selected lists of best non-REIT income stocks.