;-) MARKET TALK: Buying Cheese, but Selling Crackers at Cannacord
11/06 01:00 PM
13:00 EDT - Cannacord is reaching for Kraft Foods' (KRFT:$44.96,00$0.19,000.42%) cheese, but not Mondelez's (MDLZ:$26.475,0$0.065,00.25%) crackers, as it initiates coverage on the two parts of the onetime Kraft empire.
KRFT is a buy, firm says, as management for the North American grocery unit has "laid out a clear growth for profit growth in spite of muted top-line trends," and that potential cost savings laid out by management are underestimated.
Firm starts MDLZ at sell, with shares a 10% premium to other global food companies, even as several risks--like exposure to Western Europe and Asia--could limit results.
Both KRFT and MDLZ report Q3 results Wednesday, with Cannacord seeing a risk that MDLZ disappoints. KRFT up 0.5% to $45; MDLZ up 0.2% to $26.47.
(paul.ziobro@dowjones.com; @pziobro)
Call us at (212) 416-3100 or email patrick.sullivan@dowjones.com
(END) Dow Jones Newswires
11-06-121300ET
Copyright (c) 2012 Dow Jones & Company, Inc.
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