Deutsche Bank Maintains a 'Buy' on Sara Lee (SLE); Deferred But Not Denied

Deutsche Bank maintains a 'Buy' on Sara Lee (NYSE: SLE), price target lowered by $2 to $20.

Deutsche analyst says, "Despite a poor response to F2012 guidance, we continue to recommend Sara Lee. We believe value creation via on-going operations or possible M&A is likely. We see pro-forma valuation (11x adj. $1.20+ EPS) as compelling along with a $3 special cash dividend and ongoing dividend yield of 3%+...we lower F2012 EPS to $0.95 from $1.13. Yet we urge investors to focus on stand-alone EPS power of both companies as well as M&A potential."

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 $17.09 yesterday.

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