UPDATE - William Blair Initiates Coverage on Mead Johnson Nutrition (MJN) with an Outperform
MJN Hot Sheet
Rating Summary:4 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 19 | Down: 7 | New: 26
UPDATE - William Blair initiates coverage on Mead Johnson Nutrition (NYSE: MJN) with an Outperform.
William analyst, Jon Andersen, said, "We believe that Mead Johnson represents one of the best long-term growth opportunities among midcap stocks in the consumer products industry," Andersen said, "based on its attractive position in a large global growth category, strong brand portfolio and innovation capability, robust emerging markets platform, and superior profit and return profile. Mead Johnson is a leader in infant formula and children's nutrition products, a large and growing category underpinned by favorable demographic and economic trends. Mead Johnson's target markets in aggregate are forecast to reach $34 billion (at retail) in 2015, compared with an estimated $24 billion in 2010, representing compound annual growth of 7% over the next five years. The company's brand portfolio is anchored by the well-known Enfa family of brands, which accounts for nearly 80% of Mead Johnson's revenue and is the world's leading brand franchise in pediatric nutrition. More than 60% of Mead Johnson's sales are generated in faster-growing emerging markets in Asia and Latin America. And while the company has a long history of successful innovation, beginning in 2005 Mead Johnson increased spending in research and development and built new innovation capabilities, investments that are just now beginning to produce tangible benefits."
Analyst Jon Andersen estimated the company would generate earnings of $2.70 per share in 2011 and $3.10 per share in 2012.
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William analyst, Jon Andersen, said, "We believe that Mead Johnson represents one of the best long-term growth opportunities among midcap stocks in the consumer products industry," Andersen said, "based on its attractive position in a large global growth category, strong brand portfolio and innovation capability, robust emerging markets platform, and superior profit and return profile. Mead Johnson is a leader in infant formula and children's nutrition products, a large and growing category underpinned by favorable demographic and economic trends. Mead Johnson's target markets in aggregate are forecast to reach $34 billion (at retail) in 2015, compared with an estimated $24 billion in 2010, representing compound annual growth of 7% over the next five years. The company's brand portfolio is anchored by the well-known Enfa family of brands, which accounts for nearly 80% of Mead Johnson's revenue and is the world's leading brand franchise in pediatric nutrition. More than 60% of Mead Johnson's sales are generated in faster-growing emerging markets in Asia and Latin America. And while the company has a long history of successful innovation, beginning in 2005 Mead Johnson increased spending in research and development and built new innovation capabilities, investments that are just now beginning to produce tangible benefits."
Analyst Jon Andersen estimated the company would generate earnings of $2.70 per share in 2011 and $3.10 per share in 2012.
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