Clorox was cut to underweight from overweight and its price target went to $170 a share from $240.
At last check Clorox shares were down 0.7% to $181.24. They have traded on Monday off as much as 3% at $177. And they'd set a 52-week low $176.73 on March 3.
Last week, Clorox shares slid after the Oakland, Calif., household-supplies icon missed Wall Street's fiscal-third-quarter revenue forecast and cut its full-year earnings guidance.
Investors reacted as the earnings report showed that sales fell from the year earlier period's "unprecedented growth" brought on by the COVID-19 pandemic.
Wells Fargo analyst Chris Carey says Clorox shares are "dead money, at best, with downside."
The investment firm says sales in the company's professional and international segments, two important "new growth drivers," fell short of estimates. That makes it "much harder to argue for 'underappreciated' upside, the analyst says.
Wells Fargo wasn't the only firm to downgrade Clorox following its report.
-- Credit Suisse lowered its price target to $185 from $205 while maintaining a neutral rating.
-- Deutsche Bank lowered its target to $186 from $195 with a hold rating.
-- Morgan Stanley lowered its target to $170 from $183 with an underweight rating.
-- D.A. Davidson lowered its target to $177 from $189.
Last month, D.A. Davidson analyst Linda Bolton Weiser had downgraded Clorox to neutral from buy and lowered her price target on the stock to $189 from $234.
Weiser wrote that there was a risk that Clorox “could fail to raise and might even lower its guidance” when it reported fiscal-third-quarter results.