Analyst Christopher Carey from Wells Fargo maintained a Hold rating on Kraft Heinz (KHC – Research Report) and keeping the price target at $31.00.
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Christopher Carey has given his Hold rating due to a combination of factors influencing Kraft Heinz’s financial outlook. The recent reset of 2025 EPS was necessary to alleviate some pressure, yet it still leaves uncertainties regarding the company’s sales and gross margin projections. Despite an EPS reset that appeared larger than expected, this was primarily driven by tax factors, with organic sales remaining weak and possibly prompting increased expenditures, which poses a risk to gross margins.
Furthermore, Kraft Heinz’s guidance for fiscal year 2025 suggests flat to declining organic sales and a small contraction in adjusted EBIT, which contrasts with market expectations. The company’s challenges in North American retail, combined with anticipated recovery delays in the US market, contribute to a cautious outlook. With these variables, Carey identifies potential risks in sales performance and cost management that justify a Hold rating, indicating a balanced view of the company’s prospects without a clear signal for significant upside or downside.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $29.00 price target.