Goldman Sachs Maintains “Conviction Buy” Rating on Mead Johnson Nutrition (MJN)

Following Mead Johnson Nutrition Co.’s (MJN) presentation at the Consumer Analyst Group of Europe (CAGE) conference on Wednesday, analysts at Goldman Sachs reiterated their bullish rating on the children’s nutrition products maker.

The analysts maintain a “Conviction Buy” rating on MJN and see shares reaching $93. This valuation suggests a 25% upside to Wednesday’s closing price of $74.52.

“The rapid rise of dairy costs has been a surprise, but we largely see this as noise. MJN has pricing power, particularly in the context of this being an industry-wide issue, and already there are news reports out of Asia referencing broad-based price hikes for formula manufacturers,” said Goldman Sachs analyst Jason English. “The top line is the key focus area for MJN investors and pricing will accelerate sales growth. Overshadowing the dairy cost outlook is the uncertainty over Mead’s China/HK business.”

Mead Johnson shares were inactive during pre-market trading on Thursday. The stock is down -6.57% over the past year.

The Bottom Line
Shares of Mead Johnson (MJN) have a dividend yield of 1.83% based on last night’s closing price of $74.52 and the company’s annualized dividend payout of $1.36 per share.

Mead Johnson Nutrition Co. (MJN) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here