Sara Lee Analyst Upgrades Rating to Hold
Argus analyst Erin Smith said in a research note that she had been concerned that Sara Lee wouldn't be able to find buyers for the businesses it wanted to sell following the resignation of CEO Brenda Barnes, who initiated and led the company's portfolio repositioning to focus on its core meats and beverage businesses.
"However, the past few months have proven otherwise," she said.
Smith noted that during this period, Sara Lee has either completed or announced deals to sell almost all its household and body care businesses, and its North American Fresh Bakery business, both of which were underperforming segments."We believe that these asset sales will help the company to focus on its higher-margin, higher-growth businesses." Still, Smith cautioned that she expects the company's near-term sales and earnings growth to be limited by company-specific and industry-wide factors, including renewed cost inflation for coffee and other products. She added that the company also expects difficult year-over-year comparisons in the second quarter and continued challenges in markets such as Spain and the Netherlands.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV