The Clorox Company (CLX), a major US household goods producer, recently released an upbeat 4Q15 financial report. The report shows the company’s revenue grew 4% y-o-y (given devaluation effects, revenue increased 6% y-o-y) to USD 1.56 bn, while EPS jumped 10.8% y-o-y to USD 1.44, 5% above the median consensus. The cleaning product sector rose most (9% y-o-y). Due to positive 4Q15 results and an optimistic view on the company’s rollout prospects, the management raised its quarterly dividend by 4% y-o-y to 77 cent per share, with a dividend yield totaling 2.8%. In addition, the company continues its share repurchase program. In the last 12 months of the current financial year, the company bought back 4 mn shares worth USD 434 mn. In 2016, the Clorox management expects revenue to climb 3-4%. Adjusted EPS is expected to total USD 4.68-4.83, up 2.4-5.7% y-o-y. We believe there are good expansion prospects for the company in the medium term. The US economic recovery will buttress consumer good sales, and this, coupled with higher dividend and the repurchase program, will lend support to the company’s share performance. Our price target for the Clorox stock is USD 120, and we believe this is an attractive mid-term investment opportunity.