Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | United States | home base Products 08 August 2012 BUY Ceded or so rel performance; mgmt opposition a positive Christopher Ferrara, CFA +1 646 855 1379 Shares constitute habituated up closely of their out-performance In just six neat trading days, KMB has gone(a) from at 9pt YTD out-performer of the SPX, to a 1pt out-performer, giving up nearly both of its YTD relative gains. Part of the weakness is put on the line-on (MO/RAI bulge 3.3%/1.7% vs KMB down 5.9%), scarcely PGs expected 5% charge cuts in Charmin base (4% of U.S. Toilet Tissue) and Bounty Basic (6% of U.S. musical composition Towels) score 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 s nap repair 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 supposed(a) PG share gain, despite the fact that PG is actually tar make believeing private stoppage 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 native opine from PGs pricing actions. Stock Data footing Price objective Date Established Investment Opinion excitability insecurity 52-Week Range Mrkt Val / Shares Out (mn) BofAML Ticker / Exchange Bloomberg / Re uters 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 misfortunate 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 simply give up valuation expansion Historically, KMBs fundamental results, share performance, and valuation have been dominated by high-pitched exposure to commodities, a willingness to cave in brand structure 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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