UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Lowers PT on Kraft Foods

In a report published Monday, Bank of America Merrill Lynch reiterated its Buy rating on Kraft Foods KFT, but lowered its price target from $47.00 to $45.00. BofA Merrill Lynch noted, “Kraft recently hosted separate investor presentations for Mondelez International (MDLZ) and Kraft Foods Group (KRFT) in connection with its planned spinoff of KRFT, which is targeted for October 1st. KFT shares reacted negatively (down 5.78% on 9/7) creating a particularly good buying opportunity, in our view...MDLZ and KRFT 2013 combined guidance was ~$0.20 below our forecast (on KFT shares) with $0.10 from ongoing operations (currencies, pension costs) and $0.10 from split related costs (tax rate, timing related dis-synergies). In our view the split related costs are likely to subside by FY14 (setting up potentially higher than normal growth). The stock also reacted to an increase in cash restructuring costs, vagueness of MDLZ dividend policy, and KRFT guidance policy.” Kraft Foods closed on Friday at $39.99.