Analysts at Deutsche Bank provided their outlook on Kimberly-Clark Corporation (NYSE:KMB) ahead of the company’s Q1 results, which are expected to be reported on April 22.

The company’s shares have broadly underperformed the market since Q4/21 results—as full 2022 guidance once thought potentially conservative is now viewed at risk given a rising cost backdrop and the company’s questionable pricing power amidst growing concerns of a weaker consumer.

While the analysts are modestly above the Street estimates for Q1/22, they are still directionally more cautious on the full year and set-up for the stock given (1) evidence of recent private label share gains in the company's categories, (2) further trade down risk propelled by incremental pricing needed to protect margins in the face of higher costs, and (3) less flexibility for the company to reinvest in the core business.