Clorox: Cyberattack Compounds Existing Challenges

Oct. 10, 2023 10:17 AM ETThe Clorox Company (CLX) Stock, , , 5 Comments

Summary

  • Clorox benefited from COVID-19 but faced slowed growth, cyberattacks, despite their IGNITE strategy and tech investments.
  • Clorox faces rising costs and recession fears, compounded by cyberattacks, but should show resilience thanks to a strong brand portfolio.
  • After the cyberattack, Clorox's Q1 2024 outlook worsens; concerns arise over sustaining dividend aristocrat status.
  • Assuming a moderate decline resulting from the recent cyberattack, Clorox’s current price suggests moderate returns.

Clorox Products Production Disrupted By Cyberattack

Brandon Bell/Getty Images News

Investment Thesis

I believe The Clorox Company (NYSE:CLX) is a hold at its current position. The company, which saw a significant boost during the COVID-19 pandemic due to heightened demand for its products, is now navigating a

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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