UPDATE: Goldman Sachs Reiterates Sell Rating, Lowers PT on H.J. Heinz Company on Lower Estimates
In a report published Monday, Goldman Sachs reiterated its Sell rating on H.J. Heinz Company (NYSE: HNZ), but slightly lowered its price target from $54.00 to $53.00.
Goldman Sachs noted, “We remain Sell-rated on HNZ and lower our 12-month price target to $53 from $54 given lower estimates following the devaluation of the Venezuelan currency. We use a blended P/E & EV/EBITDA methodology based on 5-year average 15X P/E and 10X EV/EBITDA to arrive at our target price. We have made modest estimate revisions for HNZ based on retail takeaway data in the quarter and updated FX rates. As a result our FY12/FY13/FY14 EPS estimates move to $3.51/$3.66/$3.73 from the prior $3.52/$3.73/$3.81. There could be upside risks to our estimates and price target if emerging market growth was significantly higher than we are modeling, if HNZ marketing spending in NACP was not as large as anticipated, or if the company benefits from another lower-than-expected tax rate.”
H.J. Heinz Company closed on Friday at $60.91.
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