Argus Starts Kraft Heinz Company (KHC) at Buy

Argus initiates coverage on Kraft Heinz Company (NASDAQ: KHC) with a Buy rating and a price target of $91.00.

Formed from the merger of Kraft Foods and H.J. Heinz in mid-2015, the analyst notes company expects to generate $1.5 billion in annualized cost synergies by 2017. The combination will also help Kraft to expand international sales by leveraging Heinz’s strength in overseas markets, according to the analyst.

In November 2015, the company raised its quarterly dividend by 4.6% to $0.575 per share, or $2.30 annually, for a yield of about 2.9%. They think the dividend is secure and likely to grow, as KHC should continue to generate strong cash flow.

For an analyst ratings summary and ratings history on Kraft Heinz Company click here. For more ratings news on Kraft Heinz Company click here.

Shares of Kraft Heinz Company closed at $78.70 yesterday.

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