Time To Buy Kraft-Heinz? Bernstein Just The Latest To The Party

In a report published Thursday, Bernstein analyst Alexia Howard upgraded the rating on Kraft Heinz Foods Co HNZ from Market Perform to Outperform, while raising the price target from $73.50 to $94. The analyst believes that the stock could see upside, primarily driven by future acquisition that the company might undertake over the next two to four years.

According to the Bernstein report, the controlling shareholders have an impressive track record of improving shareholder value, as seen in their efforts with other companies, and they seem to be doing the same at Kraft Heinz.

Value Through Acquisitions

"We expect another acquisition in 2-3 years which could be up to 26 percent value accretive," Howard stated, adding, "We suspect further dealmaking activity for Kraft Heinz is more likely than not as returns could improve as a result."

However, Howard isn't the only one to recommend Kraft Heinz. In a report published on July 20, BMO Capital analyst Kenneth B. Zaslow initiated coverage of Kraft Heinz with a Market Perform rating and price target of $80.

Attractive Investment Option

According to Zaslow, "We appreciate the appeal of investing in Kraft Heinz, as a highly motived management team backed by a world-class investor will continue to reshape and reconfigure KHC… over the next two to three years," while adding that the company was a platform for further acquisitions.

Even before this, in a report published July 7, Barclays analyst Andrew Lazar initiated coverage of Kraft Heinz, following the completion of the merger, with an Overweight rating and price target of $79.

Long Term Value Creation Potential

Lazar explained that although the stock might remain relatively rangebound in the near term, cost savings and strategic optionality was expected for provide the company with ample opportunity for value creation.

In another report published July 7, Deutsche Bank analyst Eric Katzman initiated coverage of Kraft Heinz with a Hold rating and price target of $68. "Investors are being given the choice of higher margins near term vs. the industry's long term incremental approach," Katzman stated.