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BofA double downgrades Kraft Heinz to Underperform after ‘disappointing’ outlook

BofA double downgrades Kraft Heinz to Underperform after ‘disappointing’ outlook

As previously reported, BofA downgraded Kraft Heinz (KHC) to Underperform from Buy with a price target of $30, down from $36, following Q4 results and a “disappointing” initial FY25 outlook. Downgrading shares on the lows is “not heroic,” but the firm struggles to see a path to meaningful organic sales improvement over the next 12 months, the analyst tells investors. Kraft Heinz, unlike food peers who have reset EPS expectations with their initial FY25 outlooks this earnings season, such as Hershey (HSY) and Mondelez (MDLZ), “continues to have a revenue problem,” the analyst added.

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