UPDATE: Credit Suisse Raises PT on Kimberly Clark on Solid 1Q13 EPS Beat

In a report published Monday, Credit Suisse analyst Michael Steib reiterated an Underperform rating on Kimberly Clark Corp. KMB, and raised the price target from $82.00 to $90.00. In the report, Steib noted, “KMB reported 1Q 13 EPS of $1.48, significantly above consensus of $1.34 and raised guidance for FY13 by 2% to $5.60-$5.75. While the quarter was strong on EPS, driven by in-line topline growth (boosted by a couple of one-offs), lower than expected input cost inflation and substantial cost savings, we view KMB shares as richly valued, currently trading at a 10-year high PE multiple of 18.6x forward earnings. In view of the stronger start to the year, we are raising our FY13 EPS estimate to $5.67 (from $5.52) and our target price to $90 (from $82). In addition we are also raising our 2014 EPS estimate to $5.99 (from $5.83). Underlying organic growth is challenging. Organic sales increased 3% in line with consensus and our estimates, driven by strong Consumer Tissue sales (up 5%).” Kimberly Clark Corp. closed on Friday at $106.10.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit Suisse
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!