Deutsche Bank Downgrades Mead Johnson Nutrition To Hold As Shares Appear To Be Fairly Valued
In a research report released Monday, Deutsche Bank analyst Eric Katzman downgraded shares of Mead Johnson Nutrition (NYSE:MJN) from Buy to Hold, while maintaining his $103 price target, and removing the stock as his 2014 “Top Pick”.
Katzman explains: “With recent headlines pointing to Danone’s interest in Mead Johnson as a potential M&A target (Reuters, 10/17/14) and the latter’s stock now up close to 20% for 2014, we believe the time is right to downgrade the shares. Given current valuation (25x P/E, 17x EBITDA), we adjust our fundamental-based opinion on Mead to HOLD from BUY.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Eric Katzman has a total average return of 5.8% and a 50.0% success rate. Katzman has a 3.3% average return when recommending MJN, and is ranked #781 out of 3354 analysts.