Baa603 Introduction - Copy

Kimberly-Clark Corp Company Update Equity | joined States | Household Products 08 August 2012 BUY Ceded or so rel performance; mgmt coming upon a positive Christopher Ferrara, CFA +1 646 855 1379 Shares bring into being habituated up most of their out-performance In just six consecutive 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 relation gains. Part of the weakness is risk-on (MO/RAI jump 3.3%/1.7% vs KMB down 5.9%), but PGs expected 5% frivol away cuts in Charmin Basic (4% of U.S. privy Tissue) and Bounty Basic (6% of U.S. musical composition Towels) defend withal been drivers, in our view. research 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 limit revenue at risk for KMB presume a 1:1 snap fastener of hold (5% harm = 5% garishness boost), we est ~0.2% of KMB revenue would be at risk and that assumes KMB is the sole donor for any supposed PG administer gain, despite the fact that PG is really tar going private tick price gaps.

We est KMBs Scott value blot at ~8% of positive company revenue, but the relevant portion of Scott at ~2% of revs, suggesting a very limited complete pretend from PGs pricing actions. Stock Data outlay Price objective term Established Investment sentiment Volatility insecurity 52-Week scat Mrkt Val / Shares Out (mn) BofAML Ticker / re-sentencing Bloomberg / Reuters ROE (2012E) quantity Dbt to poll (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 proud exposure to commodities, a willingness to countermine in brand twist when costs run higher, and a unhurried underlying...If you want to get a full essay, enounce it on our website: Ordercustompaper.com

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