Deutsche Bank Maintains Buy On Heinz
Deutsche Bank is out with a research report on Heinz (NYSE: HNZ) and it has a Buy rating, but is lowering its price target to $59 from $60.
In a note to clients, Deutsche Bank writes, "Despite a tough macro environment, lower EPS and questions about F2H12 outlook, we retain our BUY opinion. While it may take time to emerge, we believe EPS power is significant once selected investments start yielding positive returns. Meanwhile a solid dividend and balance sheet give support. Operating EPS of $0.78 was $0.03 above our est. on 15% sales growth (vs. our 11% forecast with volume/price +3.1%). EBIT of $410 mil. was up 1.1% with Australia and U.S. Foodservice limiting results. We note non-opr. items (incl. lower corp. exp., tax rate) helped EPS about $0.09 vs. our model. Maintain Buy."
Shares of HNZ lost $1.79 on Friday to close at $50.57, a loss of 3.42%.
