Erin Lash, CFA

Erin Lash, CFA, is a sector director of consumer equity research for Morningstar.

More From Erin Lash

The wide-moat firm's stable of strong brands, entrenched relationships with retailers, and expansive global scale should ensure it withstands looming headwinds.

A pullback in brand spending has artificially inflated profit levels across the industry, which are unsustainable.

While the narrow-moat firm abandoned its bid for wide-moat Unilever, we doubt its interest in consolidating the space has subsided.

There is some strategic rationale to the tie-up, but given the higher price that would be needed to bring Unilever to the table, we don’t see the takeover as imminent.

Given all of the transformative actions the wide-moat firm is presently undertaking, we don't anticipate investor Nelson Peltz will call for additional steps to transform the business at this time.

We'd suggest investors remain on the sidelines of this no-moat retailer as we expect to shave around $1 from our $72 fair value estimate.

We suggest investors interested in the household and personal-care space consider taking a stake in this wide-moat name.

The narrow-moat retailer continues to benefit from its decision to part ways with its lossmaking pharmacy business and efforts to drive organization-wide efficiencies.

Shares of this wide-moat firm trade modestly below our valuation and look relatively attractive in an industry where discounts are few and far between.

More About Erin Lash

Erin Lash, CFA, is a sector director, consumer equity research, for Morningstar. Beyond managing a team of nine analysts and associates covering an array of consumer firms, Lash also conducts fundamental analysis of 13 multi-billion-dollar market-capitalization firms in the packaged food and household and personal care space.

Before joining Morningstar in 2006, Lash spent four years as an investment analyst covering retail, transportation, and technology firms for State Farm Insurance. In this capacity, Lash analyzed financial statements, business strategy, and fundamentals of owned companies and potential investments, presenting her recommendations based on this analysis to State Farm's portfolio managers for ownership consideration.

Lash holds a bachelor’s degree in finance from Bradley University’s Foster College of Business. She also holds a master’s degree in business administration, with concentrations in accounting and finance, from the University of Chicago Booth School of Business. Lash has completed the Chartered Financial Analyst® designation. She ranked second in the food and tobacco industry in The Wall Street Journal’s annual “Best on the Street” analysts survey in 2013, the last year the survey was conducted.

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