Mead Johnson confident in growth, citing strong fundamentals in emerging markets Projects the shift of the company into an emerging markets company as business in Asia and Latin American continue to grow. Brazil also remains a large source of growth with a growing middle class and despite recent difficulties. Mead Johnson said China is shifting towards more premium products. Cites company's strength in supermarket channel and Hong Kong business. The company said there are near term challenges in the United States, but birth rates are stabilizing and there's reason for future optimism. The company adds that its Singapore facility is on track to open this year. Comments taken from Deutsche Bank Global Consumer Conference.
On The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: Abbott (ABT) upgraded to Overweight from Equal Weight at Barclays... Anglo American (AAUKY) upgraded to Equal Weight from Underweight at Morgan Stanley... Autohome (ATHM) upgraded to Buy from Neutral at UBS... BHP Billiton (BHP) upgraded to Overweight from Equal Weight at Morgan Stanley... CME Group (CME) upgraded to Buy from Neutral at BofA/Merrill... Ctrip.com (CTRP) upgraded to Buy from Neutral at BofA/Merrill... Delek US (DK) upgraded to Outperform from Market Perform at Wells Fargo... E.W. Scripps (SSP) upgraded to Buy from Hold at Evercore ISI... HollyFrontier (HFC) upgraded to Buy from Hold at Deutsche Bank... Kimberly-Clark de Mexico (KCDMY) upgraded to Overweight from Neutral at JPMorgan... Lazard (LAZ) upgraded to Buy from Hold at Sandler ONeill... Lexmark (LXK) upgraded to Neutral from Sell at Citi... Lundbeck (HLUYY) upgraded to Neutral from Sell at Goldman... Marathon Petroleum (MPC) upgraded to Outperform from Market Perform at Wells Fargo... Mead Johnson (MJN) upgraded to Buy from Neutral at Nomura... Morgan Stanley (MS) upgraded at RBC Capital... RELX (RELX) upgraded to Buy from Hold at Deutsche Bank... Rio Tinto (RIO) upgraded to Overweight from Equal Weight at Morgan Stanley... Suez Environnement (SZEVY) upgraded to Buy from Hold at Societe Generale... Trustco Bank (TRST) upgraded to Market Perform from Underperform at Keefe Bruyette.
Mead Johnson upgraded to Buy from Neutral at Nomura Nomura upgraded Mead Johnson to Buy with a $93 price target. Analyst Mark Howden expects Mead Johnson to cut guidance at the October 22 investor day/Q3 results due to deteriorating pricing in China but said valuation has better incorporated the realty of lower baby formula prices and China/Hong Kong shares erosion. Howden now views risk/reward as profitable and said it the price could encourage consolidation in the sector.