The substantial decline in pulp prices recently, along with elevated pulp inventory levels, has materially changed Kimberly-Clark's input cost inflation outlook, according to Morgan Stanley analyst Dara Mohsenian. Given that the better input costs should drive near-term EPS upside, he is making a positive short-term trading call in the stock, predicting that the company will cut its input cost inflation guidance by $75M to $225-$325M and raise its FY19 EPS guidance to $6.60-6.80 from $6.50-6.70. Though Mohsenian raised his price target on Kimberly-Clark shares to $145 from $132, he keeps an Equal Weight rating on the stock on a longer-term view, as he still expects market share struggles and sees lower growth potential.