Heinz Remains Moderate And Rightfully So

Deutsche Bank has published a research report on the H. J. Heinz Company HNZ after the company beat estimates after reporting 3Q results during its earnings call, while showing the latest in company progress. In the report, Deutsche Bank writes "Heinz [also] is fortunate to not be experiencing the same commodity costs that are currently pressuring many of its peers. The company pointed to a 3% increase in its input cost basket, with the inflationary impact of dairy and resin partially offset by favorable costs for tomatoes and potatoes. Indeed, this is significantly better than others in the peer group who have reported much higher inflationary pressures (Kellogg +6% COGS inflation in 2011, Sara Lee +20-21% increase in F2011 spot input cost basket), and thus we believe Heinz is relatively well positioned looking out over the next few quarters." Deutsche Bank maintains its Buy rating and $54 price target. The H. J. Heinz Company closed yesterday at $48.67.