Kimberly-Clark Started as a “Buy” at Janney Montgomery Scott (KMB)

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Health and hygiene products maker Kimberly-Clark Corporation ( KMB ) on Tuesday saw its coverage initiated with a "Buy" rating by analysts at Janney Montgomery Scott.

The firm also set a $75 price target on KMB, which implies a 22% upside to the stock's Monday closing price of $61.53.

A JMS analyst commented, "What makes Kimberly's portfolio unique is its participation in categories with few substitutes and high market share concentration. Try as a stretched consumer may, there are few alternatives to restocking depleted inventories of baby care, feminine care, and adult care products - which have sustained consistent (range of +3% to +9% since 2003) and very robust (+6.9% 5-year average) organic growth in the company's largest segment, personal care (58% of profit)…As opposed to the +3% EPS expected growth implied by today's valuation (12.2x P/E, 4.3% dividend yield), we believe the mid-point of guided 4%-9% long-term growth is easily achievable - the basis of our $75 fair value estimate."

Kimberly-Clark shares were mostly flat in premarket trading Tuesday.

The Bottom Line
We have been recommending shares of Kimberly Clark ( KMB ) since July 23, 2009, when the stock was trading at $54.46. The company has a 4.29% dividend yield, based on last night's closing stock price of $61.53.

Kimberly-Clark Corporation ( KMB ) is a "Recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: KMB

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