Goldman Sachs Has Buy Rating on Sara Lee (SLE)

Goldman Sachs is out with its report today on Sara Lee SLE, moving the company from NR to Buy.

In a note to clients, Goldman Sachs writes, "We have removed the NR designation from SLE shares. We now rate SLE a Buy with a 12-month price target of $19. SLE has announced plans to split in two (Meat Co. and Coffee Co.) and is returning cash to shareholders. We see 34% total return potential based on (a) our sum-of-the parts valuation, (b) its strategic value as an M&A candidate and (c) the distribution of cash to shareholders in the form of a $3 special dividend."

Shares of SLE closed Thursday at $16.76.