UPDATE: Goldman Sachs Upgrades H.J. Heinz Company to Neutral on Increased M&A Probability
Goldman Sachs upgraded H.J. Heinz Company (NYSE: HNZ) from Sell to Neutral and raised the price target from $53.00 to $61.00.
Goldman Sachs commented, "On February 14, HNZ announced it has agreed to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital for $72.50/share, in a transaction valued at $28 bn including the assumption of HNZ's outstanding debt. The proposed deal values HNZ at a 13.4X multiple on our NTM EBITDA of $2.1 bn. The transaction is subject to shareholder and regulatory approval and is expected to close in calendar 3Q12. We are upgrading HNZ to Neutral (from Sell) given the increased likelihood of M&A following the proposal."
H.J. Heinz Company closed at $72.50 on Thursday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.