H.J. Heinz (HNZ) Gets Boost From Bullish Barron's Piece

Shares of H.J. Heinz shares (NYSE: HNZ) are 3% higher today after Barron's highlighted the stock this weekend, saying it has underperformed peers and is an attractive takeover target.

Barron's noted that shares of Heinz are down 27% in the past six months, versus an average drop of about 10% for its peers. They also said the company has a better multiple than peers. Barrons notes, "It trades for 12 times estimated profits in the current fiscal year and it carries a similar multiple on estimated calendar '09 earnings, a discount to Kellogg (NYSE: K), Kraft Foods (NYSE: KFT) and General Mills (NYSE: GIS), which fetch about 14 times estimated '09 profits."

Barron's also said Heinz's dividend looks safe at less than 60% of profits and the yield is attractive at 4.6%.

One research outfit, Mark Boyar & Co, said "Heinz is clearly inexpensive now" and said it could become a takeover in the next few years for the likes of Nestle (OTC: NSRGY), Kraft (NYSE: KFT) or Unilever (NYSE: UN). Boyar believes Heinz ultimately could fetch $60 to $70 a share in a deal.

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