NEW YORK, Jan 24 (Reuters) - Sara Lee Corp shares could rise as much as 40 percent in the next year as investors applaud the food maker's attempts to cut costs, seek non-core businesses and revamp its product line, Barron's newsmagazine reported on Sunday.
The stock could rise as high as $16.50, up from Friday's close at $11.70, based on its earnings power and below-market average price-to-earnings multiple, said Barron's citing private investor James Lane.
Lane also told Barron's investors could benefit from a consolidation wave that may attract buyers for the maker of food and household products.
The company also offers investors an 'attractive' dividend yield of 3.6 percent, Barron's said.
(Reporting by Chelsea Emery; Editing by Tim Dobbyn) Keywords: SARALEE/OUTLOOK (chelsea.emery@thomsonreuters.com; +1 646 223 6115; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The stock could rise as high as $16.50, up from Friday's close at $11.70, based on its earnings power and below-market average price-to-earnings multiple, said Barron's citing private investor James Lane.
Lane also told Barron's investors could benefit from a consolidation wave that may attract buyers for the maker of food and household products.
The company also offers investors an 'attractive' dividend yield of 3.6 percent, Barron's said.
(Reporting by Chelsea Emery; Editing by Tim Dobbyn) Keywords: SARALEE/OUTLOOK (chelsea.emery@thomsonreuters.com; +1 646 223 6115; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.