Clorox (CLX) is not expected to deliver any major surprises in fiscal Q4, with focus likely on initial fiscal 2027 guidance, UBS Securities said in a note Sunday. The results are due Aug. 3.

"We do not expect any major surprises and believe 4Q top line and margin weakness is generally well understood," it said.

Despite persistent market share losses, underlying consumption trends have shown modest improvement, the report said. Still, there are issues impacting Q4, including lapping shipment timing ahead of the ERP implementation a year ago, it added.

The report also said it is difficult to have confidence in the top/bottom line trajectory at this stage amid attractive valuation, pointing to rising input costs, underlying demand still below historical averages, and a management transition to come.

UBS kept a neutral rating with a price target of $100.

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