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. (NYSE: 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.
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