BMO Capital reiterated an Outperform rating with a $97.00 price target on Mead Johnson Nutrition (NYSE: MJN) following the company's 2Q earnings report. MJN reported EPS of $0.88, above $0.81 estimates. The company reiterated EPS guidance of $3.48-3.60.

Analyst Amit Sharma commented, "MJN reported 2Q16 adjusted EPS of $0.88, $0.07 above our estimate, as weaker-than-expected sales were more than offset by nearly 300bp of EBIT margin expansion and a lower-than-expected tax rate (+$0.05). Consolidated FX-neutral sales declined by 4% (Asia: -7%; LatAm: -3%; NA: flat) as new testing of fully imported products slowed sales/shipments in China, while higher trade spending to support the launch of Enfinitas in China penalized sales by nearly 260bp. MJN raised its three-year cost savings program by $60mm to $180mm, including incremental $15-20mm in 2016 (vs. previous target of $60mm). MJN reduced its FX-neutral sales guidance to flat to -2%, while maintaining EPS guidance of $3.48-3.60, owing to higher gross margins, greater cost savings, tax benefit ($0.05), and lower FX headwinds ($0.35 vs. previous guidance of $0.40)."

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Shares of Mead Johnson Nutrition closed at $89.89 yesterday.