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Kraft Heinz: 71% of Analysts Recommend a ‘Buy’ after Fiscal 2Q16



Target prices

Kraft Heinz (KHC) released its financial results for fiscal 2Q16. In this part, we’ll discuss Wall Street analysts’ target prices for Kraft Heinz for the next 12 months after its earnings results. The results show that the ratings are the same with a 6% increase in the target price. It’s important to note that 71% of analysts still rate Kraft Heinz as a “buy,” ~19% rate it as a “hold,” and 10% rate it as a “sell.”

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Consensus rating for Kraft Heinz

The average broker target price for Kraft Heinz rose to $96.94 from $91.13. It rose by 6% after the earnings release. This represents a 9% rise for the company compared to its closing price of $88.75 on August 8.

Below are Kraft Heinz’s peers’ target prices and return potentials:

  • Campbell Soup (CPB) has a target price of $63.92 and a return potential of 4%.
  • ConAgra Foods (CAG) has a target price of $51.41 and a return potential of 10%.
  • J.M. Smucker (SJM) has a target price of $151.55. It already beat estimates by 2%.

The First Trust Consumer Staples AlphaDEX ETF (FXG) invests 3.2% in Kraft Heinz, 0.81% in ConAgra Foods, and 1.5% in Campbell Soup. The First Trust NASDAQ-100 Ex-Technology Sector ETF (QQXT) invests 1.5% of its portfolio in Kraft Heinz.

Recommendations for Kraft Heinz

Susquehanna Financial has given Kraft Heinz its highest target price of $118. It increased its target price from $98 after the results. This represents a 33% rise compared to the company’s closing price of $88.75 on August 8. It rates Kraft Heinz as a “strong buy.”

Bernstein also gave an optimistic target price of $110 to Kraft Heinz. This target price is 24% higher than the company’s current trading price. It rates the stock as a “strong buy.” It raised its price target for Kraft Heinz from $106 after the company’s 2Q16 earnings release.

Morgan Stanley, Goldman Sachs, RBC Capital Markets, Credit Suisse, UBS, Edward Jones, J.P. Morgan, and Stifel also rate the stock as a “strong buy.” On the lower side, BMO Capital Markets gave Kraft Heinz a target price of $90. It represents a rise of 1% as of August 8.


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