Morgan Stanley Maintains Overweight, $43 Target on Kraft Foods

Morgan Stanley remains rated Overweight with a $43 target price on Kraft Foods

on generally solid Q4 and initial guidance. Morgan Stanley comments, "Kraft reported 4Q EPS of $0.57 (FY EPS of $2.29), in line with both our forecast and consensus although impacted by several “moving pieces” (e.g., $0.10/share tax benefit, -$0.05/share hedging impact). The company also provided initial 2012 EPS guidance of “at least 9%” growth (~$2.50) on a constant-currency basis, which remains strong but – given a likely F/X headwind at present – may suggest some incremental conservatism versus the current $2.52 consensus. Importantly, though, operating results remained strong across all three regions." KFT closed at $38.01 a share on Friday.