Citi downgrades Kraft Heinz with outlook not ‘fully de-risked’

Citi downgraded Kraft Heinz (KHC) to Neutral from Buy with a price target of $28, down from $34. The company’s 2025 sales and earnings outlook disappointed, but the outlook may not be “fully de-risked,” when considering Kraft’s “somewhat limited” planned investments in marketing and promotions this year and the magnitude of the expected sales inflection as 2025 progresses, the analyst tells investors in a research note. Citi believes another year of incremental investments will be needed in 2026 to drive positive sales growth. Kraft Heinz is still not making the investments that have weighed on the earnings of others, the firm contends. It cut estimates and downgraded the shares.