Kraft Foods (NYSE:KFT) Undervalued Says Barclays (NYSE:BCS)

Barclays (NYSE:BCS) says Kraft Foods (NYSE:KFT) has been ignored by investors in regard to various segments they've made significant progress in, and believe the company is undervalued.

"Based on the market reaction since KFT's 3Q10 results (down nearly - 5% vs. the group -2% and a flat S&P 500), one would think that KFT has made little progress on any of the fronts on which investors base a more favorable bias, which we don't think is true. Given this inconsistency, we thought it might make sense to explore against which tenets of our own Overweight thesis KFT has veritably delivered, where there is more progress to be made, and the upcoming catalysts for the shares...All in, KFT's heavily discounted valuation (- 6% vs. peers) gives little credit to the company for the areas where it has shown steady progress, in our view," said Barclays.

They maintain an "Overweight" on Kraft, which closed Tuesday at $30.64, up $0.35, or 1.16 percent. Barclays has a price target of $35 on them.