Kraft Foods Group Receives Neutral Rating from Zacks (KRFT)

Share on StockTwits

Kraft Foods Group (NASDAQ:KRFT)‘s stock had its “neutral” rating restated by Zacks in a research note issued on Thursday, AnalystRatingsNetwork reports. They currently have a $57.00 price target on the stock. Zacks‘ price target would indicate a potential upside of 6.64% from the stock’s previous close.

Zacks‘ analyst wrote, “Kraft’s third-quarter adjusted earnings of $0.65 per share missed the Zacks Consensus Estimate by 4.4% and declined 23.5% year over year. Weak top line, higher interest expense and taxes hurt earnings. Sales declined 4.2% due to difficult volume comparisons and a tough consumer environment and missed the Zacks Consensus Estimate. Several product categories were once again soft due to consumption weakness and increased competitive activity. Kraft has been struggling with its top line ever since the split from Mondelez. Moreover, increasing competitive pressures, challenging industry conditions and a lack of exposure outside the U.S. concerns us. However, the company has strong fundamentals. Kraft’s aggressive cost reduction and efficiency-improvement initiatives remain on track providing cash to invest in innovation, brand-building and marketing initiatives. Moreover, Kraft is focusing on building shareholders’ value through share buybacks and regular dividend payments. “

Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley upgraded shares of Kraft Foods Group from an “equal weight” rating to an “overweight” rating in a research note to investors on Monday, December 9th. They now have a $60.00 price target on the stock, up previously from $55.00. They noted that the move was a valuation call. Separately, analysts at RBC Capital initiated coverage on shares of Kraft Foods Group in a research note to investors on Monday, November 25th. They set an “outperform” rating and a $60.00 price target on the stock. Finally, analysts at Canaccord Genuity downgraded shares of Kraft Foods Group from a “buy” rating to a “hold” rating in a research note to investors on Thursday, October 31st. They now have a $59.00 price target on the stock. Six investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Kraft Foods Group currently has an average rating of “Hold” and an average target price of $58.00.

Shares of Kraft Foods Group (NASDAQ:KRFT) opened at 53.45 on Thursday. Kraft Foods Group has a 1-year low of $45.15 and a 1-year high of $58.76. The stock has a 50-day moving average of $53.25 and a 200-day moving average of $54.12. The company has a market cap of $31.849 billion and a P/E ratio of 17.35.

Kraft Foods Group (NASDAQ:KRFT) last announced its earnings results on Wednesday, October 30th. The company reported $0.70 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.69 by $0.01. The company had revenue of $4.39 billion for the quarter, compared to the consensus estimate of $4.59 billion. During the same quarter in the previous year, the company posted $0.79 earnings per share. The company’s revenue for the quarter was down 4.2% on a year-over-year basis. Analysts expect that Kraft Foods Group will post $2.80 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which is scheduled for Friday, January 17th. Shareholders of record on Friday, December 27th will be paid a dividend of 0.525 per share. This represents a $2.10 annualized dividend and a dividend yield of 3.93%. The ex-dividend date is Tuesday, December 24th.

Kraft Foods Group, Inc (NASDAQ:KRFT) operates food and beverage businesses in North America.

To view Zacks’ full report, visit www.zacks.com

Leave a Reply

 
© 2006-2014 North Fork Vue.