Kraft Foods Gets ‘Overweight’ Rating (KFT, CS, CBY)
Credit Suisse (NYSE: CS) has restored the coverage of Kraft Foods (NYSE: KFT). According to a report released by Credit Suisse (CS), the firm is likely to attract investors after its seamless integration with Cadbury's (NYSE: CBY) assets.
Credit Suisse has said that Kraft Foods (KFT) now has an increased exposure to emerging markets. The report suggests that the market has yet to factor in the synergy benefits of the Kraft-Cadbury (CBY) deal.
Kraft stock is currently trading at 11.5% percent discount to its peers. The report forecasts EPS of $2.15 for 2010. The EPS figure for 2011 has been pegged at $2.45. The firm has been given a price target of $35, which is 14X estimated 2011 earnings per share. Credit Suisse has an "Overweight" rating on Kraft shares.
