Earlier this week, Kraft Foods Inc. announced its spinoff from parent company, Atria Group Inc. Tuesday, April 3 was Kraft’s first day on the Stock exchange as a newly independent company.
Irene Rosenfeld, chairman and chief executive of the newly independent Kraft Foods Inc. said, “We feel terrific. We feel very confident that the plans in place are going to deliver long-term shareholder value.”
Her comments came as shares of Kraft stumbled on the first day of trading following the spinoff by parent Altria Group Inc. Kraft shares fell 2.6 percent, to close at $30.85 on the New York Stock Exchange, after rallying from a morning low of $30.28.
Pablo Zuanic, a JPMorgan analyst in New York who is frequently a contrarian, said in a note to investors that Kraft is a good investment. The addition of Kraft to the indexes, as well as share buybacks and additional food marketing, should push the stock to $40 in the next 15 months, Zuanic said.