UPDATE: Canaccord Genuity Initiates Kraft Foods Group at Buy on EPS Growth Outlook
Canaccord Genuity initiated coverage on Kraft Foods Group (NASDAQ: KRFT) with a Buy rating and a $50 price target.
Canaccord Genuity noted, "Management has laid out a clear path for profit growth in spite of muted top-line trends, and the evidence suggests that the team has already delivered encouraging results over recent years. The CFROA over the last 3 years is among the best in the sector and, going forward, cash requirements besides the dividend are low and the cash flows stable, with minimal FX risk. Prospective EPS growth over the next 2 years is ahead of two-thirds of the peer group. We expect a significant culture shift at Kraft Foods Group to underpin further material development in the medium term."
Kraft Foods Group closed at $44.76 on Monday.
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