03:42 PM EDT, 10/21/2024 (MT Newswires) -- Kimberly-Clark's ( KMB ) top-line performance in Q3 could be "heavily impacted" by "retailer inventory destocking" in the personal care segment, but its earnings are likely to at least meet guidance due to productivity enhancements, RBC Capital Markets said in a note Monday.

RBC does not expect the recent port strikes or hurricane-related consumption to significantly affect the company's shipments this quarter. "However, we are confident in EPS delivery as robust productivity likely offsets a potentially softer topline," the note said.

In the consumer tissue segment, "scanner trends" are below expectations with the company facing challenges from private label share gains and energy-surcharge pricing in Europe. Despite this, "robust productivity" should help meet earnings targets, and internal changes point to long-term growth potential, RBC said.

Although Kimberly-Clask has seen "high levels of volatility" in recent years, it has developed new capabilities including automation, global procurement and revenue growth management, which combined with a "new organizational structure in place," should allow the company to achieve "more dependable growth that should warrant a higher multiple," the note said.

RBC reiterated an outperform rating on Kimberly-Clark ( KMB ) with a price target of $165.

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