logo
  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
Advertisement

Advertisement


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

rss feed

Latest Stories

article imageSector Detector: Bulls Go Down Swinging, Refusing To Give Up Much Ground

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down read on...

article imageThe Bumpy Road Ahead To Policy Normalization

When the dust clears from tomorrow’s Fed announcement, the crowd’s expecting that the slow but persistent read on...

article imageAnalyzing Performance Histories That Might Have Been

The trend in recent years of securitizing more of the world’s market betas offers investors, in theory, read on...

article imageBig Prints in VIX Calls

The CBOE Vix Index is in positive territory on Friday morning as shares in the S&P 500 Index move slightly read on...

Advertisement
Popular Articles

Advertisement
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.