On Nov 01, major Wall Street analysts update their ratings for $The Kraft Heinz (KHC.US)$, with price targets ranging from $34 to $41.
Barclays analyst Andrew Lazar maintains with a hold rating, and adjusts the target price from $36 to $35.
Evercore analyst David Palmer maintains with a buy rating, and maintains the target price at $38.
TD Cowen analyst Robert Moskow maintains with a hold rating, and adjusts the target price from $36 to $34.
Mizuho Securities analyst John Baumgartner maintains with a buy rating, and adjusts the target price from $43 to $41.
Stifel analyst Matthew Smith, CFA maintains with a hold rating, and adjusts the target price from $38 to $35.
Furthermore, according to the comprehensive report, the opinions of $The Kraft Heinz (KHC.US)$'s main analysts recently are as follows:
Kraft Heinz experienced a shortfall in Q3 organic sales growth and conveyed that its 2024 earnings might align with the lower spectrum of its forecasted range. Furthermore, the company anticipates growth up to 2025 to fall short of its projected goals. The analyst notes that the company's efforts to enhance its U.S. retail trends are progressing more slowly than initially anticipated.
The diminished expectations for growth and profitability extending into fiscal 2025 and beyond have influenced a more cautious stance on Kraft Heinz. While the company's valuation may still be perceived as low or appealing in comparison to the market, the anticipated recovery in sales appears to be a lengthier process, which may delay any significant positive developments.
Kraft Heinz's Q3 outcomes displayed weakening trends in U.S. retail, indicating a recovery that may be more prolonged due to competitive forces. Persisting challenges with volume and pricing gaps, along with increased promotional endeavors, are likely to continue impacting the company's profit margins.
Following the earnings report, the valuation of Kraft Heinz shares is considered to be supported by a 5% dividend yield, with a belief that near-term expectations are being managed appropriately despite reduced estimates.
Management has expanded the list of underperforming brands, including a devaluation of the Lunchables brand, and indicated that the anticipated growth algorithm of 2-3% is not expected to be reached in the following year. This development suggests a heightened likelihood of further changes to the company's brand portfolio.
Here are the latest investment ratings and price targets for $The Kraft Heinz (KHC.US)$ from 7 analysts:
Note:
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