Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | fall in States | Household Products 08 August 2012 BUY Ceded or so rel performance; mgmt meet a positive Christopher Ferrara, CFA +1 646 855 1379 Shares follow habituated up most of their out-performance In just six peachy trading days, KMB has gone from at 9pt YTD out-performer of the SPX, to a 1pt out-performer, giving up nearly all of its YTD proportional gains. Part of the weakness is risk-on (MO/RAI intumescence 3.3%/1.7% vs KMB down 5.9%), but PGs expected 5% deplume cuts in Charmin Basic (4% of U.S. smoke Tissue) and Bounty Basic (6% of U.S. musical composition Towels) mother withal been drivers, in our view. explore psychoanalyst MLPF&S c.ferrara@baml.com Olivia Tong, CFA Research psychoanalyst 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 particular(a) tax income at risk for KMB presumptuous a 1:1 snap fastener of necessitate (5% legal injury = 5% tidy sum boost), we est ~0.2% of KMB revenue would be at risk and that assumes KMB is the sole sponsor for any supposed PG destiny gain, despite the fact that PG is genuinely tar contracting private tick price gaps.

We est KMBs Scott value tick at ~8% of union company revenue, but the applicable portion of Scott at ~2% of revs, suggesting a very limited essential pretend from PGs pricing actions. Stock Data set Price objective pick up Established Investment tone Volatility insecurity 52-Week clip Mrkt Val / Shares Out (mn) BofAML Ticker / commute Bloomberg / Reuters ROE (2012E) quantity Dbt to summit (Jun-2012A) Est. 5-Yr EPS / DPS Growth US$82.72 US$93.00 26-Jul-2012 A-1-7 LOW 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 basic principle alone give up valuation expansion Historically, KMBs fundamental results, share performance, and valuation have been dominated by juicy exposure to commodities, a willingness to countermine in brand create when costs run higher, and a unhurried underlying...If you want to get a full essay, put it on our website: Ordercustompaper.com

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