Join        Login             Stock Quote

Deutsche Bank Raises PT On Kraft Foods (KFT) To $39, Retains 'Hold' Opinion

 May 04, 2012 02:01 PM

Deutsche Bank (DB) raised its price target on shares of Kraft Foods Inc. (NYSE:KFT) to $39 from $37, while retaining its "Hold" opinion on the stock.

The bank views splitting into 2 companies as improving the chances of creating LT value, but said it updated SOTP analysis suggests this is largely be discounted.

"With a continued heavy cash cost to effectuate such change, we see the stock as fairly valued in the high $30s or perhaps c. $40 until SnackCo / GroceryCo show meaningful FCF improvement," DB wrote in a note.

"Kraft reported opr. EPS of $0.59 vs. our $0.55 est. Results excl. $0.13 of 1-time items. Sales increased 4.1%, ahead of our 2% est., reflecting Developing market success and some Easter benefits. EBIT of $1.9 bil was slightly above our forecast, again tied to Developing markets," the bank said.

[Related -Stocks Jump 1 Pct On Strong Jobs Data; AIG Gains]

"Upside risks: volume out-performance, cost savings, less inflation (dairy, grains), tax efficiency. Downside risks: competition (branded, pvt label), high inflation, split execution," DB wrote.

Northfield, Illinois-based Kraft Foods makes packaged food products worldwide. Its primary brand portfolio includes Oreo, Nabisco, and LU branded biscuits; Milka and Cadbury branded chocolates, among others.

The stock lost 24 cents or 0.61% to trade at $39.35 on Friday. Over the past year, shares have been trading between $31.88 and $39.99.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.