Gabelli: Outlook for Heinz is Holding Up

According to a research report published earlier today by Gabelli, HJ Heinz Co.'s (NYSE: HNZ) growth initiatives will drive top-line results in the future.

“Looking ahead, growth initiatives, such as new products, favorable price/mix, more efficient spending on discounts & allowances in Europe and acquisitions will drive top-line results, while productivity savings and pricing should offset the majority of raw material costs; however this is partially offset by additional spending of $0.08/share behind project Keystone. Continue to Hold, Heinz is currently trading at 9.8x 2013P EBITDA and 15.0x P/E. PMV of $74 per share based on fiscal 2013 estimates,” Gabelli explained.

Gabelli maintains its Hold rating and $74 PMV on HJ Heinz, which closed Friday at $54.47.