BofA lowered the firm’s price target on Kraft Heinz (KHC) to $27 from $29 and keeps an Underperform rating on the shares after the company announced plans to separate into two independent, publicly traded company through a tax-free spin-off. Berkshire Hathaway (BRK.B) (BRK.A), which holds a 27.5% ownership stake, spoke publicly to CNBC on its disappointment in the split, notes the firm, which applies a lower multiple as fundamentals remain soft and it sees an overhang from potential selling pressure from the company’s largest shareholder.
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Read More on KHC:
- Kraft Heinz price target lowered to $28 from $30 at Stifel
- Kraft Heinz Split: Balancing Long-Term Gains Against Immediate Risks and Shareholder Concerns
- Kraft Heinz’s Strategic Split Faces Skepticism Amid Market Challenges and Berkshire’s Uncertainty
- Kraft Heinz price target lowered to $27 from $29 at Wells Fargo
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