Susquehanna lifts price targets on nine food stocks after factoring in the impact of lower tax rates.
Analyst Pablo Zuanic on the PT rationale: "We generally assume the effective tax rate on U.S. earnings (all in, factoring state/local taxes) falls from 37% to 27% (yes, some companies may have been realizing a lower U.S. effective tax rate already, although this is not always disclosed), and assume the previously implied taxes on foreign earnings do not change (we also assume the disclosed U.S./non-U.S. earnings mix is the same for tax purposes)."
PT changes: Kraft Heinz (NASDAQ:KHC) to $81 vs. today's price of $77.79; Mondelez International (NASDAQ:MDLZ) to $47 vs. today's price of $43.20; Kellogg (NYSE:K) to $72 vs. today's price of $68.54; Hershey (NYSE:HSY) to $113 vs. today's price of $112.77; General Mills (NYSE:GIS) to $61 vs. today's price of $59.72; J.M. Smucker (NYSE:SJM) to $150 vs. today's price of $125.20; Blue Buffalo Pet Products (NASDAQ:BUFF) to $42 vs. today's price of $33.16; TreeHouse Foods (NYSE:THS) to $56 vs. today's price of $49.70; Hain Celestial (NASDAQ:HAIN) to $41 vs. today's price of $40.55.
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