UPDATE: Miller Tabak Downgrade Mead Johnson Nutrition Company to Neutral Post Share Rally

Miller Tabak downgraded Mead Johnson Nutrition Company

from Buy to Neutral and maintained a $76.00 price target. Miller Tabak commented, "[F]ollowing yesterday's 11.5% rally in the stock, we estimate that MJN is currently trading at 23.0x FY 2013 earnings and 15.0x our FY 2013 EBITDA which we think reflects a full multiple given the company's maturing North American/Europe business which makes up 30% of sales with negligible/negative growth, offset by the EM franchise which constitutes 70% of sales and moderating 6%-7% growth for FY 2013. We continue to think the company should trade at a blended 15.0x FY 2013 EBITDA multiple based on a 17.0x-18.0x multiple for the EM segment and 7.0x-8.0x multiple for the developed markets business which, as shown below, generates our $76.00 price target and our neutral rating." Mead Johnson Nutrition Company closed at $76.00 on Thursday.