Kimberly-Clark to form partnership with Suzano
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2025
0mins
Strategic Partnership Formation: Kimberly-Clark has formed a strategic partnership with Suzano to create a new international tissue and professional products company, with Kimberly-Clark holding a 49% stake and Suzano 51%. The venture will include assets from Kimberly-Clark's International Family Care and Professional business, which generated approximately $3.3 billion in net sales in 2024.
Financial Implications and Future Plans: The transaction is expected to be dilutive to Kimberly-Clark's Adjusted Earnings Per Share by $0.30-0.40 in the first full year post-closing, with plans to return cash proceeds to shareholders through share repurchases. The deal is set to close in mid-2026, pending regulatory approvals and customary conditions.
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Analyst Views on KMB
Wall Street analysts forecast KMB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMB is 127.71 USD with a low forecast of 95.00 USD and a high forecast of 162.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
8 Hold
1 Sell
Moderate Buy
Current: 104.260
Low
95.00
Averages
127.71
High
162.00
Current: 104.260
Low
95.00
Averages
127.71
High
162.00
About KMB
Kimberly-Clark Corporation is a global company focused on delivering products and solutions that provide better care. The Company's segments include North America and International Personal Care. The North America segment consists of products encompassing each of its five global daily-need categories across consumer and professional channels including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers and other related products. International Personal Care segment consists of three core categories: Baby & Child Care, Adult Care and Feminine Care, including disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, reusable underwear and other related products. Its portfolio of brands includes Huggies, Kleenex, Scott, Kotex, Cottonelle, Depend, and Pull-Ups.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Chevron's Stable Returns: Chevron boasts a 4% dividend yield and has increased its dividend for 37 consecutive years, with plans to grow earnings per share and free cash flow by at least 10% by 2030 when Brent crude prices are at $70, providing a robust cushion amid oil price volatility.
- Strong Financial Foundation: Chevron expects to achieve free cash flow breakeven at $50 per barrel of Brent, demonstrating its solid financial health and ability to navigate market fluctuations, ensuring long-term returns for shareholders.
- Kimberly-Clark's Acquisition Strategy: Kimberly-Clark is acquiring Kenvue at a price below $100, aiming for completion by 2026; despite facing growth stagnation and cost pressures, the company is optimistic about achieving billions in annual cost synergies post-acquisition.
- Sustained Dividend Growth: On January 27, Kimberly-Clark announced an increase in its quarterly dividend from $1.26 to $1.28 per share, which, while modest, marks its 54th consecutive year of dividend increases, reinforcing its status as a Dividend King and appealing to income-seeking investors.
See More
Investment Opportunities in Chevron and Kimberly-Clark
- Chevron's Robust Dividends: Chevron offers a 4% dividend yield and has increased its payout for 37 consecutive years, with plans to grow earnings per share and free cash flow by at least 10% by 2030 at $70 Brent crude, demonstrating resilience amid oil price fluctuations.
- Kimberly-Clark's Acquisition Strategy: Kimberly-Clark announced the acquisition of Kenvue, expected to close by the end of 2026; despite initial challenges, the company is optimistic about achieving billions in annual cost synergies, which will drive future earnings growth.
- Sustainability of Kimberly-Clark's Dividends: Kimberly-Clark anticipates generating $1.7 billion in free cash flow in 2025, fully supporting its $1.66 billion in dividend payments, showcasing financial stability amid industry slowdowns.
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- Procter & Gamble's Situation: Procter & Gamble faced a 14.5% stock price decline in 2025, and despite a slight recovery in early 2026, a 1% drop in sales volume and a 5% decrease in net earnings highlight significant challenges, with future growth expectations remaining weak.
- Kimberly-Clark's Acquisition Plan: Kimberly-Clark anticipates achieving $2.1 billion in annual cost synergies from its acquisition of Kenvue, and while short-term performance is lackluster, this strategy may provide better growth prospects in the long run, attracting value investors' interest.
- Dividend Appeal: Procter & Gamble and Kimberly-Clark offer dividend yields of 2.9% and 5%, respectively, with both companies having a long history of increasing dividends, providing stable cash flow for income-seeking investors despite market pressures.
See More
Market Outlook for Procter & Gamble and Kimberly-Clark
- Sales Strategy Shift: Procter & Gamble is focusing on increasing sales volumes rather than raising prices, despite a 14.5% stock decline in 2025; under new CEO leadership, the company aims to improve performance through volume growth, although it may face margin compression in the short term.
- Poor Financial Performance: P&G's Q2 report indicated a 1% decline in sales volume and flat organic sales growth, with 2026 EPS growth projected at only 1% to 6%, highlighting significant challenges in a weak demand environment.
- Kimberly-Clark's Acquisition Plans: Kimberly-Clark plans to diversify through the acquisition of Kenvue, expecting EPS growth within two years post-acquisition and $2.1 billion in annual cost synergies within three years, despite low near-term performance expectations.
- Dividend Appeal: Both P&G and Kimberly-Clark are attractive high-dividend stocks, with P&G yielding 2.9% and Kimberly-Clark at 5%, both having consistently increased dividends over the years, appealing to investors seeking passive income.
See More
Kimberly-Clark's Mediocre Outlook for 2026
- Restructuring and Acquisition: Kimberly-Clark is undergoing a multiyear restructuring and integration, expecting to achieve $2.1 billion in annual synergies from the Kenvue acquisition, primarily from $1.9 billion in cost synergies within three years, which will enhance profitability and market competitiveness.
- Sales Growth Outlook: The company anticipates 2% organic sales growth for 2026, with flat adjusted EPS, yet a mid-to-high single-digit increase in adjusted operating profit indicates potential resilience amidst adversity, reflecting cautious optimism for the future.
- Dividend Sustainability: Kimberly-Clark raised its dividend for the 54th consecutive year in Q4 2025, achieving a current yield of 5%, demonstrating that the company can still support dividend payments through cash flow and profitability, thereby boosting investor confidence.
- Market Reaction: Although the market was prepared for Kimberly-Clark's mediocre performance, with the stock only falling 0.5%, the company remains around its lowest level in 12 years, indicating investor concerns and a cautious outlook on future growth.
See More
Kimberly-Clark's 2026 Outlook and Dividend Growth
- Dividend Growth Continues: Kimberly-Clark announced a 5% dividend yield after raising its payout for the 54th consecutive year in its Q4 2025 report, demonstrating the company's ability to maintain stable cash flow and shareholder returns amid economic uncertainty.
- Weak Sales Growth: Despite achieving 1.7% organic sales growth in 2025, Kimberly-Clark faced pressure from a 0.9% price decline, with only a 2% organic sales growth forecast for 2026, reflecting weak market demand.
- Strategic Kenvue Acquisition: The acquisition of Kenvue is expected to generate $2.1 billion in annual synergies within three years, primarily from $1.9 billion in cost synergies, indicating Kimberly-Clark's strategy to diversify its product lines and enhance market competitiveness during its transformation.
- Long-Term Investment Opportunity: Trading at just 13 times forward earnings, Kimberly-Clark's stock, combined with a 5% dividend yield, presents an attractive long-term holding opportunity for value investors, despite lower short-term performance expectations.
See More
