Barclays on U.S. Consumer Staples: Removing RAH from our Consumer Staples 'Favorites' List

Barclays on U.S. Consumer Staples: Removing RAH from our Consumer Staples 'Favorites' List

Barclays analyst says, "We are removing Ralcorp (NYSE: RAH) (Overweight) from the #3 slot on our Consumer Staples "Favorites" List following news headlines indicating that ConAgra (NYSE: CAG) (Equal Weight) made an unsolicited bid for the company (see April 29, 2011 Dow Jones Article "ConAgra Made Unsolicited Offer for Ralcorp; No Current Talks -CNBC"). No other details around a potential transaction were mentioned, other than the idea that the bid was reportedly made approximately two months ago."

"Our Consumer Staples "Favorites" List is now: Estee Lauder (NYSE: EL), Coca-Cola (NYSE: KO), Philip Morris Intl (NYSE: PM), Kraft (NYSE: KFT), Dr Pepper Snapple (NYSE: DPS), Intl Flavors (NYSE: IFF), PepsiCo (NYSE: PEP) (versus the prior EL, KO, RAH, PM, KFT, DPS, IFF, PEP)."

"While we maintain our Overweight rating and continue to view RAH as attractive investment longer term, the shares have surpassed our $75 price target and we see near term, fundamentally driven upside as less likely for the time being, particularly as investors evaluate the merits of a possible CAG/RAH transaction."

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