Analysts’ Recommendations for Kraft Heinz Stock



More downgrades?

Most of the analysts providing recommendations on Kraft Heinz (KHC) stock continue to have a positive stance. Given the persisting challenges, as we discussed in the previous part, upside in the company’s sales and profits seem limited, which could lead to more downgrades. Recently, J.P. Morgan lowered its target price on Kraft Heinz stock from $95.00 to $87.00.

Kraft Heinz’s sales are projected to improve on a quarter-over-quarter basis due to the launch of innovation-based products. The impact of negative currency movements is also expected to subside as the year progresses. However, the increased competitive environment, soft product demand in the US (SPY), and tough retail landscape will likely restrict the sales growth. The company’s bottom line is estimated to take a hit from lower volumes and increased input costs.

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Recommendation summary and target price

Analysts have a consensus score of 2.1 on Kraft Heinz stock on a scale of 1.0 (which means “strong buy”) to 5.0 (reflecting “strong sell”). It’s important to note that 68% of the analysts recommended a “buy” on Kraft Heinz stock and 32% maintained a “hold.” Kraft Heinz stock closed at $77.77 on October 4, 2017, which represents 22.5% upside to analysts’ target price of $95.28 per share.

In comparison, analysts maintain a neutral outlook on most of the food stocks including J.M. Smucker (SJM), Kellogg (K), and General Mills (GIS). Analysts are still confident about Conagra (CAG) stock.


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