Sell Kimberly-Clark Stock: Goldman Sachs

Kimberly Clark has been downgraded by Goldman Sachs to reflect a potential climb in wood-pulp costs.

Author:: Andrea Tse
Publish date:: Mar 2, 2010 12:27 PM EST

NEW YORK (

TheStreet

) --

Kimberly Clark

(KMB) - Get Report

has been downgraded by

Goldman Sachs

(GS) - Get Report

to reflect a potential climb in wood-pulp costs.

Kimberly-Clark has been downgraded to sell from neutral by Goldman Sachs.

Goldman Sachs is now lowering its 2010/2011/2012 estimates to $4.89/$5.10/$5.45 from $4.90/$5.20/$5.55 to reflect the potential for wood-pulp costs to climb to $940 per ton.

Goldman Sachs is now 2% below the consensus for 2010 and 5% below the consensus for 2011.

"Consensus does not seem to reflect potential for $400-$450 million in input cost inflation for the company looking ahead to 2011," Goldman Sachs analyst Andrew Sawyer writes in a note to investors.

By midday Tuesday, Kimberly Clark stock has fallen 1% to $60.10.

-- Reported by Andrea Tse in New York

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