DA Davidson Raises Price Target on Mead Johnson Nutrition (MJN) Following Analyst Conference

DA Davidson is maintaining its Neutral rating on shares of Mead Johnson Nutrition (NYSE: MJN) and is increasing its price target from $75 to $80 following a very powerful and positive presentation at its analyst day.

Management reported that EPS for Q3 is expected to be $0.76-$0.78, well above the firm's previous estimate of $0.61 and the consensus of $0.66. The firm notes the upside is made up from $0.03 on a lower tax rate and $0.03 from F/X gains. Some of the upside was also due to pulling earnings forward from Q4.

New Q3 guidance calls for a 15 percent increase in sales, with its Asian and Latin America segment expected to grow by 30 percent. Sales in the North American and European segment is expected to decline by 9 percent.

The firm is raising its 2011 and 2012 EPS estimates from $2.73 and $3.10 to $2.80 and $3.15.

For more ratings news on Mead Johnson Nutrition click here and for the rating history of Mead Johnson Nutrition click here.

Shares of Mead Johnson Nutrition closed at $73.73 yesterday.

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