Kraft Heinz price target lowered to $38 from $41 at Mizuho

Mizuho lowered the firm’s price target on Kraft Heinz (KHC) to $38 from $41 and keeps an Outperform rating on the shares. The firm says 2025 opens with U.S. Food valuations near 20-year lows vs. the S&P 500 and weaker expectations for EPS given soft volumes and limited pricing power. In addition, continued uncertainty about demand related to GLP-1s and new regulatory concerns should limit investors’ appetites to own the space in the near term. Mizuho believes that most models remain capable of normalized positive mid- to high-single-digit EPS, but views 2025 as an investment year including rising potential for pricing adjustments across categories where consumption remains weak following inflation.