NEW YORK (
stock has gained ground Monday on the heels of a report that says investors can expect to see shares of the consumer goods company surge 40% in the next year to $16.50, aided by the company's proactive cost-saving measures.
report says that the selling of
and cost-cutting measures undertaken by Sara Lee's CEO Brenda Barnes should save the company up to $100 million, in this year alone. Barnes' strategy also involves focusing and bolstering its product offerings with new food creations.
New Jersey-based private investor James Lane has joined Gamco Investors,
in buying up shares of Sara Lee.
quotes him as saying that the "new" Sara Lee is "either going to earn more and be more focused on its branded companies, or it's going to become part of another company."
adds that Sara Lee has an attractive dividend yield of 3.6%. In the company's first quarter fiscal 2010 earnings report, Sara Lee raised guidance for fiscal 2010 adjusted EPS by 6 cents, to a range of 90 cents per share to 96 cents per share.
Sara Lee stock has added 2.3% to $12 in afternoon trading, while consumer goods stock
Procter & Gamble
has risen 0.5% to $60.60.
is up 0.3% to $23.20, while
has fallen 0.5% to $24.40.
-- Reported by Andrea Tse in New York
>>P&G Drops $470M for a Sara Lee Brand
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