Looks at $143 billion acquisition of Unilever
- Author: Zachary Reyes Feb 18, 2017,
Feb 18, 2017, 11:30
Gratus Capital LLC increased its position in shares of The Kraft Heinz Company by 0.3% in the fourth quarter. The valuation would imply multiples of three times sales and 21 times earnings, "which strikes us as very low", according to analysts at Berenberg. "We expect a slow start with growth improving as the year progresses", he said. They now have a $96.00 price target on the stock.
Based on several research reports, Deutsche Bank Initiated Kraft Heinz Co on Feb 15, 2017 to "Buy", Price Target of the shares are set at $103.Kraft Heinz Co was Upgraded by Citigroup to " Neutral" on Jan 11, 2017.
The Kraft Heinz Company (NASDAQ:KHC) last announced results for quarter ended on 31 Mar 2015, disclosing EPS of $0.86 The reported earnings per share topped the analyst's consensus by $0.05 with the percentage difference between estimated and actual earnings arriving at 6.20%.
While we recognize the strategic attractiveness (Kraft Heinz stands to gain exposure to faster-growing emerging markets while Unilever could benefit from 3G's stringent cost-savings culture), the sheer size of the deal could substantially weaken Kraft Heinz's credit profile, particularly given its leverage is still elevated around 4 times. The stock has a 50-day moving average of $88.39 and a 200 day moving average of $87.17.
Sprint Corporation (NYSE:S), maintained return on investment for the last twelve months at -2.17, higher than what Reuters data shows regarding industry's average. The stock has a market capitalization of $106.24 billion, a PE ratio of 38.42 and a beta of 0.42.
News of the exchange surfaced after Kraft Heinz acknowledged reports that it had made a play for Unilever. The stock's RSI (Relative Strength Index) reached 55.55.
A deal for Unilever would be the largest takeover ever in the food or beverage industries, surpassing Anheuser-Busch InBev SA's purchase previous year of SABMiller PLC for about $123 billion including debt, as well as InBev NV's purchase of Anheuser-Busch Cos.in 2008 and the 2015 transaction that created Kraft Heinz, according to data compiled by Bloomberg. The mean PT is calculated considering the consensus of 14 analysts. TCI Wealth Advisors Inc. now owns 2,267 shares of the company's stock valued at $203,000 after buying an additional 20 shares during the period. Its last month's stock price volatility remained 1.52% which for the week stands at 1.67%. Number of analysts are covering this stock and now stock has got OUTPERFORM rating from 1 analyst of Thomson Reuters, 3 analysts given HOLD rating to the stock.