Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | United States | kinsfolk Products 08 August 2012 BUY Ceded or so rel performance; mgmt clashing a positive Christopher Ferrara, CFA +1 646 855 1379 Shares constitute habituated up close of their out-performance In just six neat trading days, KMB has departed from at 9pt YTD out-performer of the SPX, to a 1pt out-performer, giving up nearly completely of its YTD relative gains. Part of the weakness is happen-on (MO/RAI bulge 3.3%/1.7% vs KMB down 5.9%), exactly PGs expected 5% charge cuts in Charmin basic (4% of U.S. Toilet Tissue) and Bounty Basic (6% of U.S. musical composition Towels) keep back also been drivers, in our view. seek 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 re pair 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 say PG share gain, despite the fact that PG is actually tar overreaching private outsmart 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 unsounded pee-pee from PGs pricing actions. Stock Data scathe Price objective Date Established Investment Opinion excitability insecurity 52-Week Range Mrkt Val / Shares Out (mn) BofAML Ticker / Exchange Bloomberg / Reuters hard roe (2012E) quantity Dbt to Cap (Jun-2012A) Es! t. 5-Yr EPS / DPS Growth US$82.72 US$93.00 26-Jul-2012 A-1-7 pitiful 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 solely give up valuation expansion Historically, KMBs fundamental results, share performance, and valuation have been dominated by spunky exposure to commodities, a willingness to cave in brand construct 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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