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

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Goldman Sachs upgraded Mead Johnson Nutrition (NYSE: MJN) from Neutral to Conviction Buy with a price target of $95.00 (from $75.00).

The firm said fundamental momentum is building anew and they foresee positive estimate revisions and valuation expansion in 2013.

"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."

Goldman raised EPS estimates (FY2013 +1%; FY2014 +4%) and introduce FY2015 estimates following 4Q2012 results and revised tax rate guidance. FY13 goes to $3.42, FY14 to $4.00 and FY15 is $4.74.

For an analyst ratings summary and ratings history on Mead Johnson Nutrition click here. For more ratings news on Mead Johnson Nutrition click here.

Shares of Mead Johnson Nutrition closed at $75.05 yesterday, with a 52 week range of $61.27-$88.72.

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