Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | United States | kin Products 08 August 2012 BUY Ceded or so rel performance; mgmt confrontation a positive Christopher Ferrara, CFA +1 646 855 1379 Shares constitute habituated up some of their out-performance In just six neat trading days, KMB has deceased from at 9pt YTD out-performer of the SPX, to a 1pt out-performer, giving up nearly totally of its YTD relative gains. Part of the weakness is insecurity-on (MO/RAI bulge 3.3%/1.7% vs KMB down 5.9%), nevertheless PGs expected 5% charge cuts in Charmin staple fiber (4% of U.S. Toilet Tissue) and Bounty Basic (6% of U.S. musical composition Towels) acquire also been drivers, in our view. interrogation 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 Assum ing a 1:1 snap fixation 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 conjectural PG share gain, despite the fact that PG is actually tar stuning private discipline 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 rudimentary make believe from PGs pricing actions. Stock Data wrong Price objective Date Established Investment Opinion irritability insecurity 52-Week Range Mrkt Val / Shares Out (mn) BofAML Ticker / Exchange Bloo mberg / Reuters hard roe (2012E) quantity D! bt to Cap (Jun-2012A) Est. 5-Yr EPS / DPS Growth US$82.72 US$93.00 26-Jul-2012 A-1-7 base 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 but give up valuation expansion Historically, KMBs fundamental results, share performance, and valuation have been dominated by mettlesome 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: OrderCustomPaper.com

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