Mead Johnson risk/reward favorable into Q2 results, says Citigroup Citigroup sees a favorble risk/reward for shares of Mead Johnson into the company's Q2 results saying its surveys indicate the company is seeing positive trends in its two largest markets of China and the U.S. Mead remains Citi's top pick in U.S. food with a Buy rating and $105 price target.
Mead Johnson sees FY14 adjusted EPS $3.64-$3.72, consensus $3.72 Says excess cash flow and borring capacity provides flexibility to grow through M&A, return cash to shareholders via dividends and buybacks. Says will consider incremental demand-generation investments in 2015 in light of anticipated gross margin improvement. Sees long-term earnings growth at or above the rate of revenue growth. Sees revenue growth within the top quartile of peer group. Sees dividend growth at or above the rate of EPS growth. Comments from slides that will be presented at the Morgan Stanley Global Consumer Conference.