Goldman Sachs Lifts Numbers on Sara Lee (SLE), Sees Tons of Catalysts
Tweet
Share
E-mailGet Alerts SLE Hot Sheet
Price: $4.03 -6.93%
Rating Summary:
5 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Goldman Sachs raised estimates and their price target on Sara Lee (NYSE: SLE) today as cost cuts and catalysts approach.
The firm raised FY12 EPS from $1.07 to $1.17, which is 13% above the consensus. The firm raised FY13 from $1.23 to $1.35 and FY14 from $1.33 to $1.45. The price targets goes from $19 to $22 (ex- $3 special dividend), which implies 31% upside.
Goldman said, "We continue to believe that the Street is underestimating the cost cut potential (both pace and magnitude) at SLE and expect FY12 guidance to surprise to the upside when issued on August 11." They said this is the first of a series of positive catalysts. The Fresh Bakery divestiture is expected to close this summer and the special dividend may follow soon thereafter, Goldman explains. In addition, management will present at a conference in early September and new management teams for the separate business will present growth plans at the November analyst day. Also, the Coffee spin-out should following in CY12.
For more ratings news on Sara Lee click here and for the rating history of Sara Lee click here.
Shares of Sara Lee closed at $19.43 yesterday.
The firm raised FY12 EPS from $1.07 to $1.17, which is 13% above the consensus. The firm raised FY13 from $1.23 to $1.35 and FY14 from $1.33 to $1.45. The price targets goes from $19 to $22 (ex- $3 special dividend), which implies 31% upside.
Goldman said, "We continue to believe that the Street is underestimating the cost cut potential (both pace and magnitude) at SLE and expect FY12 guidance to surprise to the upside when issued on August 11." They said this is the first of a series of positive catalysts. The Fresh Bakery divestiture is expected to close this summer and the special dividend may follow soon thereafter, Goldman explains. In addition, management will present at a conference in early September and new management teams for the separate business will present growth plans at the November analyst day. Also, the Coffee spin-out should following in CY12.
For more ratings news on Sara Lee click here and for the rating history of Sara Lee click here.
Shares of Sara Lee closed at $19.43 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Bank7 Corp. (BSVN) Raises Quarterly Dividend 11.1% to $0.30; 2.3% Yield
- The Andersons (ANDE) Declares $0.2 Quarterly Dividend; 1.2% Yield
- Third Century Bancorp (TDCB) Declares $0.06 Quarterly Dividend; 1.5% Yield
Create E-mail Alert Related Categories
Analyst Comments, Dividends, Hot Comments, Special DividendsRelated Entities
Goldman Sachs, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
