Sara Lee Corp. (SLE) is a global manufacturer as well as marketer of high-quality brand products and possesses a formidable portfolio of well-established brands. However, as the company uses different commodities and raw materials, cost-push inflation remains a key risk factor.
Further, with the intense competition prevailing in the branded food market, Sara Lee is constantly under pressure to maintain its position. In addition, after the resignation of Sara Lee’s Chairman and Chief Executive Officer Brenda Barnes and the divestiture of its North American bakery business, there are big questions going forward.
Sara Lee is considering a sell-off itself to JBS, a Brazilian company. We currently downgrade the shares of Sara Lee from Neutral to Underperform.
SARA LEE (SLE): Free Stock Analysis Report
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