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Kraft Heinz is a ‘best-in-class’ stock because of its acquisition strategy: Jefferies

Kraft and Heinz products
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Kraft and Heinz products

Kraft Heinz will thrive as it uses its merger and acquisition expertise to boost earnings, according to one Wall Street firm.

Jefferies initiated coverage on the food company's shares with a buy rating, citing Kraft Heinz's track record of cost cutting after its acquisitions.

"We view Kraft Heinz as a core holding given best-in-class M&A optionality, & improving returns & sales growth. Kraft Heinz is positioned to outperform its peers as the industry transitions from a growth to mature stage owing to its strong brand portfolio & unique culture," analyst Akshay Jagdale wrote in a note to clients Friday. "Kraft Heinz should trade at a premium to its peers & grow EPS DD [double digit] (incl. M&A), thereby delivering best-in-class returns."