Clorox's (CLX) fiscal Q1 results were "better-than-feared," but questions remain over whether the stronger performance can continue, UBS Securities said in a note Monday.

The company reported fiscal Q1 adjusted earnings per share of $1.55, well above the $1.10 consensus estimate, helped by better top-line performance and margin delivery, according to the note.

Clorox reiterated its fiscal 2027 outlook but indicated EPS is more likely to land at the lower end of its $5.70 to $6.00 guidance range as cost pressures offset benefits from lower operating expenses. UBS said it expects fiscal Q2 earnings to face significant pressure, forecasting EPS of $0.97, down 30% from a year earlier.

The investment firm said the broader debate is unchanged, citing uncertainty around organic sales growth, cost pressures and the CEO transition. Shares are expected to remain range bound until there are greater signs that sales and earnings are stabilizing, according to the note.

UBS Securities maintained a neutral rating on Clorox and raised the price target to $96 from $91.

Clorox shares were up 2.8% in Tuesday trading.

Price: 92.42, Change: +2.52, Percent Change: +2.80