UPDATE: Bank of America Raises PO to $59 on HJ Heinz Post FQ2
Bank of America reiterated its Neutral rating on HJ Heinz (NYSE: HNZ) but increased its price objective from $58 to $59.
Bank of America noted, "Key takeaways: 1) HNZ expects a significant ramp up in sales, particularly volumes, over F2H13 due to increased marketing and innovation. … We are raising our F13 EPS estimate from $3.47 to $3.53, primarily due to a lower tax rate which is down from 22% to 20% ($0.09 p/s). We are lowering our operating profit forecast from $1.734bn to $1.713bn due to lower margins in NACP and Rest of World (ROW). We are forecasting 4.1% organic sales growth with a mix of 2.2% vol/mix and 1.9% pricing."
HJ Heinz closed at $57.62 on Wednesday.
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