UBS analyst Peter Grom has maintained their neutral stance on KHC stock, giving a Hold rating on October 17.
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Peter Grom’s rating is based on several factors that highlight the current challenges facing Kraft Heinz. Despite the anticipation surrounding the company’s upcoming split, the fundamental issues persist, with no significant improvements observed. The US market trends have continued to weaken, and margin pressures are expected to remain in the near term, contributing to a challenging third quarter outlook.
Additionally, while the company’s valuation appears attractive compared to historical averages, the lack of clear visibility into improving fundamentals or assurance that the split will unlock substantial value keeps the recommendation at a Hold. The guidance for 2025 is expected to remain unchanged, with potential adjustments pointing towards the lower end of the revenue range due to sluggish demand. These factors collectively contribute to the cautious stance taken by Peter Grom in his assessment of Kraft Heinz’s stock.
Grom covers the Consumer Defensive sector, focusing on stocks such as General Mills, PepsiCo, and Kraft Heinz. According to TipRanks, Grom has an average return of -3.0% and a 52.00% success rate on recommended stocks.
In another report released on October 17, Jefferies also reiterated a Hold rating on the stock with a $24.00 price target.