Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | United States | dwelling house Products 08 August 2012 BUY Ceded or so rel performance; mgmt confluence a positive Christopher Ferrara, CFA +1 646 855 1379 Shares constitute habituated up some of their out-performance In just six neat trading days, KMB has gone(p) from at 9pt YTD out-performer of the SPX, to a 1pt out-performer, giving up nearly alto instituteher of its YTD relative gains. Part of the weakness is peril-on (MO/RAI bulge 3.3%/1.7% vs KMB down 5.9%), still PGs expected 5% charge cuts in Charmin elemental (4% of U.S. Toilet Tissue) and Bounty Basic (6% of U.S. musical composition Towels) submit also been drivers, in our view. look for analyst MLPF&S c.ferrara@baml.com Olivia Tong, CFA Research Analyst MLPF&S olivia.tong@baml.com +1 646 855 5815 Lisa K. Lewandowski Research Analyst MLPF&S lisa.lewandowski@baml.com +1 646 855 4647 Very limited revenue at risk for KMB Assuming a 1:1 snap holdfast of demand (5% price = 5% volume boost), we est ~0.2% of KMB revenue would be at risk and that assumes KMB is the sole donor for any vatic PG share gain, despite the fact that PG is actually targeting private checker price gaps. We est KMBs Scott value brand at ~8% of total company revenue, but the relevant portion of Scott at ~2% of revs, suggesting a very limited first harmonic work from PGs pricing actions. Stock Data cost Price objective Date Established Investment Opinion irritability insecurity 52-Week Range Mrkt Val / Shares Out (mn) BofAML Ticker / Exchange Bloomberg / Reuters hard roe (2012E) quantity Dbt to Cap (Jun-2012A) Est. 5-Yr EPS / DPS Growth US$82.72 US$93.00 26-Jul-2012 A-1-7 deplorable US$61.00-88.25 US$32,543 / 393.4 KMB / NYS KMB US / KMB.N 40.2% 41.4% 8.4% / 6.7% Better fundamentals merely give up valuation expansion Historically, KMBs fundamental results, share performance, and valuation have been dominated by spun ky exposure to commodities, a willingness to! cave in brand grammatical construction when costs run higher, and a unhurried underlying...If you want to get a full essay, order it on our website: BestEssayCheap.com

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