UPDATE: Nomura Initiates Coverage on Mead Johnson Nutrition CO with Buy Rating, $123 PT on Multiple Positive Factors

In a report published Friday, Nomura analyst David Hayes initiated coverage on

with a Buy rating and $123.00 price target. In the report, Nomura noted, “We initiate coverage of Mead Johnson (MJN) with a Buy rating and a target price of USD 123, which suggests 30% total shareholder return (TSR) over the next 12 months based on a USD 109 standalone value. We add a premium for what we regard as a high likelihood (c60%) of a consortium-based approach for MJN within the next two years at cUSD 136. The stock trades at a 12-month P/E of 24.4x. We believe the optimum buying opportunity is after FY14 results (29 January). Consensus has a lower FY15 forex forecast than us. That leaves us 4% below for EPS, but we regard this as short-term noise.” Mead Johnson Nutrition CO closed on Thursday at $101.41.