We still hold an Outperform rating on Sara Lee (SLE) shares to reflect our favorable view of management’s various initiatives to achieve growth and streamline operations.
The company’s Transformation Plan is expected to generate sales growth in the range of 4% to 5% and earnings growth in the range of 5% to 8% by next year. Further, the company is executing a series of global projects to generate cost savings in the range of $350 million to $400 million by fiscal 2012.
The company is focused on more attractive product lines that have better potential for profitable growth in the long-term.Zacks Investment Research
