Jefferies lifts Kraft Heinz's PT on ongoing margin recovery potential

B&G Foods

17/01/2023 12:59

** Jefferies raises PT on Philadelphia Cream Cheese maker
Kraft Heinz Co  KHC.O  to $45 from $39
    ** Says it is increasing FY 2023 and FY 2024 EBITDA
forecasts by ~1% for each year, given ongoing margin recovery
potential 
    ** "Q4 2022 U.S. scanned trends remain strong," Jefferies
says adding year-over-year volumes are running at a
low-single-digit decline off ~14% pricing, positioning KHC for
healthy top-line performance 
    ** With limited elasticity volatility seen so far, main
questions for us for 2023 include pace of gross margin recovery
potential, upstream supply chain improvement probability, and
timing of overall share correction - brokerage
    ** Jefferies also lifts PT on Oreo maker Mondelez
International Inc  MDLZ.O  by $2 to $77; tweaks MDLZ forecasts
higher given improved exchange rates
    ** Brokerage increases PT of frozen and canned food maker
B&G Foods Inc  BGS.N  by $2 to $13 given recently improved
tracked channel trends
    ** Shares of KHC rose 13.3% in 2022, while MDLZ rose ~1% and
BGS fell ~64%
 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))