NEW YORK (TheStreet) -- Shares of Kraft Heinz (KHC) were dropping on heavy trading volume late Friday afternoon after the food and beverage company reported weaker-than-expected revenue for the 2016 third quarter late yesterday.
Despite the revenue miss, UBS analysts are bullish on the stock, saying 2017 offers a "favorable setup." The firm also reiterated its "buy" rating and $98 price target on shares of the Pittsburgh-based company, according to TheFly.
The company's accelerating free cash flow, lower debt levels and improved capital efficiency are all reasons to buy the stock, UBS noted.
"Kraft Heinz will soon have increased flexibility to revisit M&A," the firm added, Barron's reports.
About 5.85 million of the company's shares changed hands so far today vs. its average 30-day volume of 2.24 million shares per day.KHC data by YCharts