Goldman Sachs Upgrades Mead Johnson to "Conviction Buy" (MJN)

Goldman Sachs Upgrades Mead Johnson to “Conviction Buy” (MJN)

RSS

Children’s nutrition and food maker Mead Johnson Nutrition Co. (MJN) was upgraded by Goldman Sachs analysts on Monday, as the company is expected to build momentum in 2013 and raise earnings estimates.

The analysts upgraded MJN from “Neutral” to “Conviction Buy.” The firm also boosted its price target for the children’s nutrition company from $75 to $95, which suggests a +27% upside to Friday’s closing price of $75.05.

A Goldman Sachs analyst commented, “Despite MJN’s recent set-back in China, which was followed by below-consensus guidance, we believe it uniquely positioned to deliver best-in-class growth and returns. As we detail within, we believe milk formula sales will expand by $46 bn to 2020 globally (11% CAGR) and expect MJN to capture its fair share.”

The analysts also raised MJN EPS estimates. The company is now expected to earn $3.42 per share in 2013, $4.00 in 2014, and $4.74 in 2015.

Mead Johnson shares were flat during pre-market trading on Monday. The stock is down -0.24% over the past year.

The Bottom Line
Shares of Mead Johnson (MJN) have a dividend yield of 1.60% based on Friday’s closing price of $75.05.

Mead Johnson Nutrition Co. (MJN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today