Clorox's (CLX) recovery in H2 fiscal 2026 will depend on its ability to deliver results from its largest innovation slate in years and complete its ERP transition, RBC said in a note Wednesday.

The company is rolling out new products across multiple brands, including Hidden Valley and Scentiva, along with a relaunch of its cat litter line, which should begin to show benefits in late fiscal Q3 as shelf resets begin, the report said.

The ERP system upgrade, which went live last July, is expected to finish by the end of Q3, it added.

"2H'26 momentum and investor confidence into 2027 hinges on CLX's ability to execute on its initiatives," the report said.

RBC kept its sector perform rating while cutting its price target to $132 from $142 on the back of moderating long-term margin expansion and higher long-term capital expenditure.

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