Merrill Lynch boosts Kraft from 'neutral' to 'buy'

Kraft Foods Inc., the world's second- largest foodmaker, was raised to buy'' from ``neutral'' at Merrill Lynch & Co., which said it sees ``low-teens underlying earnings per share growth in 2009.''

Kraft has shown ``better-than-expected progress on its turn- around plan,'' the analysts, including Eric Serotta, wrote in a research note dated today. ``We have increased confidence in management's execution ability.''

The Merrill team set a share-price estimate of $33 on the stock. Kraft stock closed 4.3 percent higher at $27.50 yesterday.