Pinnacle Foods upgraded to Outperform from Neutral at Credit Suisse Credit Suisse upgraded Pinnacle Foods (PF) based on the expected termination of the Hillshire (HSH) merger agreement. The analyst said Hillshire will pay a $163M termination fee to Pinnacle that will provide options for the company to create shareholder value through another take-on acquisition, look for another transitional acquisition or even explore a potential sale. Price target is $36.
Pinnacle Foods sees FY15 adjusted EPS $1.86-$1.91, consensus $1.91 Sees FY15 input cost inflation estimated at 3%-3.5%; Sees FY15 productivity estimated at range of 3%-4%. Sees FY15 effective tax rate of 38%.