UBS Maintains a 'Buy' on Kraft Foods (KFT); Solid Pricing, Solid Quarter
Tweet
Share
E-mailGet Alerts KFT Hot Sheet
Price: $42.52 --0%
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
UBS maintains a 'Buy' on Kraft Foods (NYSE: KFT), PT increased by $1 to $36.
UBS analyst says, "We are increasing our 2011E EPS from $2.17 to $2.20 (+9% YOY, cons $2.22) based on modestly higher than expected revenue growth which was heartening given the weakness of the global gum business. Additionally, pricing came in strongly in 1Q, which combined with productivity is helping to offset high single digit inflation, which is higher than peers thus far in 2011."
"We continue to believe that 2011 represents a back weighted year for Kraft, particularly with accelerating synergies and easing comparisons in 2H11. Currency should help offset some inflation pressure, and further upside may depend on: 1) consumer response to rising inflation in 2Q, 2) the ability to restage the gum business after innovation misfires, and 3) the ability to revive its US coffee business after the loss of Starbucks."
For more ratings news on Kraft Foods click here and for the rating history of Kraft Foods click here.
Shares of Kraft Foods closed at $33.39 yesterday.
UBS analyst says, "We are increasing our 2011E EPS from $2.17 to $2.20 (+9% YOY, cons $2.22) based on modestly higher than expected revenue growth which was heartening given the weakness of the global gum business. Additionally, pricing came in strongly in 1Q, which combined with productivity is helping to offset high single digit inflation, which is higher than peers thus far in 2011."
"We continue to believe that 2011 represents a back weighted year for Kraft, particularly with accelerating synergies and easing comparisons in 2H11. Currency should help offset some inflation pressure, and further upside may depend on: 1) consumer response to rising inflation in 2Q, 2) the ability to restage the gum business after innovation misfires, and 3) the ability to revive its US coffee business after the loss of Starbucks."
For more ratings news on Kraft Foods click here and for the rating history of Kraft Foods click here.
Shares of Kraft Foods closed at $33.39 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Viking Holdings (VIK) PT Raised to $82 at Mizuho
- Revolution (RVMD) PT Raised to $179 at Bernstein SocGen Group
- Deere (DE) PT Raised to $585 at JPMorgan
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
