< The 2014 All-America Research TeamEric KatzmanDeutsche Bank SecuritiesFirst-Place Appearances: 0
Total Appearances: 13
Analyst Debut: 2002Capturing third place is Deutsche Bank Securities’ Eric Katzman, who climbs from runner-up. The “very numbers-oriented” analyst, as one backer describes Katzman, is generally neutral on U.S. packaged foods producers, thanks to weak market fundamentals and high valuations. Specifically, he has been advising clients that “investment in a growth company, such as Mead Johnson [Nutrition Co.], paired with a cash-return company, such as Kraft [Foods Group], makes the most investment sense.” In early January he named Mead Johnson a top pick, pointing to the Glenview, Illinois–based pediatric products manufacturer’s share gains in emerging markets and strong performance in the U.S. On the same day, he upgraded Kraft, a Northfield, Illinois–headquartered food and beverages giant, from hold to buy, heartened by modest market-share improvements, cost savings and solid payouts to shareholders. By the end of July, when he downgraded Kraft because of industrywide headwinds and slipping fundamentals, the stocks had risen 9.8 percent and 8.1 percent, respectively, to $91.08 and $57.24. During the same period the sector gained 5.3 percent. Subsequently, Mead Johnson advanced 6.1 percent further, to close at $96.62 in mid-September, while Kraft inched up 1.1 percent, to $57.87. The broader group was up 2.3 percent.
RUNNER(S)-UP
David Driscoll
Citi
Alexia Howard
Sanford C. Bernstein & Co.
Bryan Spillane
Bank of America Merrill Lynch
