Kraft Heinz: The 100-Year-Old Growth Company

Argus said in a note Wednesday that Kraft Heinz CoKHC is likely to achieve strong sales growth. The firm also believes the company would achieve management's objective of hitting the $1.5 billion annualized cost savings target in 2017.

Argus has a favorable view on the Kraft and Heinz merger, as the two companies leverage each other's sales platforms and geographic strengths.

Specifically, Argus expects 2016 sales growth to be supported by a small increase in demand for some of its products and a large reduction in currency headwinds. New product development and improved marketing this year would boost organic sales. Argus expects margin improvement due to the integration of Kraft and Heinz.

Argus reiterated its 2017 earnings per share estimate for Kraft Heinz at $3.25, representing 48 percent year-over-year growth. Sales is expected to rise a modest 2.9 percent. The firm estimates 2017 earnings per share of $4 on 2.8 percent sales growth.

The firm noted that its price target of $96 represents 29.5 times its 2016 earnings per share estimate.

At last check, shares of Kraft Heinz were up 0.25 percent at $89.45.