Bank of America Maintains Neutral and $55 PO on HJ Heinz
In an earnings preview note, Bank of America reiterates its Neutral rating and price objective of $55 per share on J Heinz Company (NYSE: HNZ) and increases EPS estimates to $0.87 for F3Q12 and $0.90 for F4Q12 on top-line growth.
According to BofA, key items ahead of earnings are: “1) Sustainability of Europe results which were solid in F1Q12, and are expected to continue to benefit from innovation, however we remain concerned given the underlying macro economic environment; 2) margins for North American Consumer Products, particularly for Frozen Entrees as HNZ gained share throughout the quarter due to lower pricing compared to ConAgra and Nestle; 3) progress on integration of Quero and Foodstar acquisitions; 4) update on FX outlook, as the US dollar has strengthened vs. the Euro and Brazilian Real over the last several weeks, which could result in less of a benefit than originally expected.”
HNZ closed at $52.73 on Wednesday.
