J.P. Morgan analyst Thomas Palmer has maintained their neutral stance on KHC stock, giving a Hold rating today.
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Thomas Palmer’s rating is based on a combination of factors surrounding Kraft Heinz’s strategic decision to split into two separate entities: Global Taste Elevation and North America Grocery Co. While the move could potentially streamline operations and improve competitive positioning in the long term, Palmer expresses concerns about the immediate impact on the company’s stock. The anticipated split, scheduled for the second half of 2026, may lead to management distractions and increased shareholder risk, especially given the reported dissatisfaction from major shareholder Berkshire Hathaway.
Furthermore, the financial outlook presents challenges, with a projected EBITDA decline in 2025 and significant stranded costs associated with the split. Although the company plans to maintain its current dividend payments, the expected dis-synergies and limited growth prospects in key segments, such as the low-margin Emerging Markets, contribute to the cautious outlook. Consequently, Palmer’s Hold rating reflects a balanced view, acknowledging potential long-term benefits while recognizing near-term uncertainties and risks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $27.00 price target.