UPDATE: Stifel Nicolaus Initiates Kraft Foods Group at Buy on Innovation, Dividends

Stifel Nicolaus initiated coverage on Kraft Foods Group

with a Buy rating and a $49 price target. Stifel Nicolaus said, "We are initiating coverage of Kraft Foods Group, Inc. with a Buy rating and a $49 target price suggesting potential for solid upside in the shares over the next year and when including the 4.5% dividend yield we foresee a strong total shareholder return over the next year. … The company has put forth a very compelling cash generation strategy that makes it quite unique in the realm of food companies – the company will manage the business first and foremost for cash generation and will return the majority of that cash to shareholders in the form of a dividend (77% payout ratio on 2013 GAAP earnings)." Kraft Foods Group closed at $44.10 on Monday.