Citigroup Inc. Upgrades Mead Johnson Nutrition to Buy (MJN)
Mead Johnson Nutrition (NYSE:MJN) was upgraded by analysts at Citigroup Inc. from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. The firm currently has a $95.00 price objective on the stock, up from their previous price objective of $77.00. Citigroup Inc.’s price target points to a potential upside of 17.15% from the company’s current price.
The analysts wrote, “We are upgrading shares of Mead Johnson to a Buy rating from a Neutral, with a target price of $95/sh (+$18), and adding it to Citi’s Focus List. We see upside to 3Q13 vs. consensus by +4c at $0.83/sh. Further, we see Mead exceeding the top end of its guidance of $3.22-$3.30, by +1c, and which compares to consensus of $3.27/sh. Our proprietary survey of China across more than 50 retail outlets indicates that Mead is gaining share in China from its competitors. Further, it appears that the significant product recalls by two of its key competitors are at the heart of Mead’s market share advances, and which drive our positive EPS revisions – 2013 $3.31 (+9c), 2014 $3.60 (+13c), and 2015 $4.05 (+18c).”
Shares of Mead Johnson Nutrition (NYSE:MJN) traded up 0.96% during mid-day trading on Monday, hitting $81.09. The stock had a trading volume of 2,191,806 shares. Mead Johnson Nutrition has a one year low of $61.27 and a one year high of $86.87. The stock has a 50-day moving average of $75.6 and a 200-day moving average of $77.18. The company has a market cap of $16.761 billion and a P/E ratio of 25.92.
Mead Johnson Nutrition (NYSE:MJN) last announced its earnings results on Thursday, October 24th. The company reported $0.91 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.79 by $0.12. The company had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $998.04 million. During the same quarter last year, the company posted $0.71 earnings per share. Mead Johnson Nutrition’s revenue was up 13.6% compared to the same quarter last year. Analysts expect that Mead Johnson Nutrition will post $3.34 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Deutsche Bank reiterated a “buy” rating on shares of Mead Johnson Nutrition in a research note to investors on Wednesday, October 16th. They now have a $86.00 price target on the stock. Separately, analysts at Credit Suisse reiterated an “outperform” rating on shares of Mead Johnson Nutrition in a research note to investors on Thursday, October 3rd. Finally, analysts at JPMorgan Chase & Co. upgraded shares of Mead Johnson Nutrition from a “neutral” rating to an “overweight” rating in a research note to investors on Tuesday, September 17th. They now have a $88.00 price target on the stock, up previously from $78.00. Eleven research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company has an average rating of “Hold” and an average target price of $81.41.
In other Mead Johnson Nutrition news, Director Stephen Golsby sold 10,000 shares of the company’s stock on the open market in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $75.28, for a total transaction of $752,800.00. Following the completion of the sale, the director now directly owns 90,172 shares of the company’s stock, valued at approximately $6,788,148. The transaction was disclosed in a filing with the SEC, which is available at this link.
Mead Johnson Nutrition Company (NYSE:MJN) is a global pediatric nutrition company.
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