Argus Downgrades KMB to Hold

Monday, May 19, 2014, Argus downgraded

from Buy to Hold citing a concern in forex headwinds and valuation. Argus analyst John Staszak expects the company to face pressure from "unfavorable currency effects and higher commodity costs in the coming quarters." Staszak notes KMB shares have risen 7% year-to-date and are trading at 17.8-times 2014 EPS estimate, but sees limited additional upside in the near term. Stating that the current share price reflects new product development efforts, undervalued international business and strong growth prospects in emerging markets gives KMB a good value. KMB shares opened at 109.96, down from the previous close of 111.06 and were last trading at 110.24 at 10:34AM EDT.