Pediatric nutrition specialist Mead Johnson Nutrition Co. ( MJN ) on Friday saw its price target and earnings estimates lowered by analysts at Goldman Sachs.
The firm said it now expects MJN shares to reach $74, suggesting a nearly 8% upside to the stock's Thursday closing price of $68.76.
Goldman maintained its "Neutral" rating on MJN but cut its earnings estimates, citing product safety concerns. On Thursday, news broke that Wal-Mart ( WMT ) had pulled the company's popular Enfamil formula from its shelves following the death of a Missouri child as from a bacterial infection. Later in the day, it was revealed that a second child had contracted the same illness, but it's still unclear whether or not either child was affected by tainted formula.
Mead Johnson shares posted modest gains in premarket trading Friday.
The Bottom Line
Shares of Mead Johnson Nutrition ( MJN ) have a 1.51% dividend yield, based on last night's closing stock price of $68.76. The stock has technical support in the $61-$65 price area. If the stock can firm up, we see overhead resistance around the all-time highs of $76-$77 a share.
Mead Johnson Nutrition Co. ( MJN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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