The Clorox Company (CLX), a major US household goods producer, recently held an investor meeting, at which it outlined the following growth drivers:The company continues to deliver double-digit growth. The 4Q15 report shows the company’s earnings rose 4% y-o-y (including devaluation effects, earnings 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 reported the strongest gains (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 sees earnings climbing 3-4%. Adjusted EPS is expected to reach USD 4.68-4.83, up 2.4-5.7% y-o-y. In addition, the company unveiled its long-term development strategy until 2020. According to the strategy, revenue is expected to increase 3-5% on an annual basis, EBIT margin will rise 25-50 bps each year, while free cash flow will reach 10-12% of revenue. The company will remain loyal to its shareholders and continue to buy back its own shares and pay out dividends. We believe the company has good expansion prospects 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. We raised our price target for Clorox stock to USD 125, and view the name as an attractive mid-term investment opportunity. The short-term technical target is USD 120.