Kraft Heinz (KHC) released its financial results for fiscal 1Q16. In this part, we’ll discuss what Wall Street analysts updated as target prices for Kraft Heinz for the next 12 months after the earnings results. The results show that 71% of analysts rate Kraft Heinz a “buy,” ~19% rate it a “hold,” and 10% rate it a “’sell.”
Consensus rating for Kraft Heinz
Now, the average broker target price for Kraft Heinz is $89.06. It increased by 5% after the 1Q16 results. This represents an 5% rise compared to the closing price of $84.26 on May 9. The company’s peers Mondelez (MDLZ), ConAgra Foods (CAG), and WhiteWave Foods (WWAV) have average broker target prices of $48.63, $50.27, and $46.68, respectively. They have the potential to rise by 9%, 9%, and 11%, respectively, in the next 12 months.
The First Trust Consumer Staples AlphaDEX Fund (FXG) invests 1.7% of its holdings in ConAgra Foods, 4.1% of its holdings in Mondelez, and 0.83% of its holdings in WhiteWave Foods. The First Trust NASDAQ-100 Ex-Technology Sector IndexSMFund (QQXT) invests 1.7% of its portfolio in Kraft Heinz.
Recommendations for Kraft Heinz
Bernstein and Susquehanna Financial gave Kraft Heinz the highest target prices of $99 and $98. This represents a 15% and 14% rise compared to the closing price of $84.26 on May 9. Susquehanna Financial rates the stock a “buy” and Bernstein rates it a “strong buy.” Susquehanna Financial raised the price target from $93 to $98. Bernstein raised it from $95 to $99 after the earnings results.
Consumer Edge Research rates Kraft Heinz a “strong buy.” It increased its target price from $84 to $88. It’s still the lowest target price assigned. This is 4% higher than the closing price on May 9. Morgan Stanley, Goldman Sachs, RBC Capital Markets, Credit Suisse, UBS, J.P. Morgan, and Stifel also rated the stock as a “strong buy.”
Kraft Heinz also received a “hold” rating from Well Fargo Securities and BMO Capital Markets. Wells Fargo Securities didn’t provide any target price for the stock. BMO assigned $90 as the target price.