02:49 PM EDT, 10/23/2024 (MT Newswires) -- Clorox's (CLX) robust performance and easier year-over-year comparisons have resulted in improved investor sentiment, but concerns over its long-term growth issues remain, UBS said in an earnings preview emailed Wednesday.

The firm projects Clorox's fiscal Q1 earnings per share of $1.57, which is ahead of estimates from Visible Alpha at $1.38 and FactSet at $1.40.

UBS said that despite the challenging environment it sees a potential upside to H1 2025 guidance, with stronger gross margin expansion expected due to cost savings, lower commodity prices, and adjustments in trade spending.

The firm said Clorox management has guided for fiscal Q1 sales growth, primarily driven by volume, with some negative impact from pricing due to increased trade spending.

The brokerage has a neutral rating on Clorox and a $172 price target.

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