Kraft Heinz price target lowered to $27 from $30 at Wells Fargo

Wells Fargo lowered the firm’s price target on Kraft Heinz (KHC) to $27 from $30 and keeps an Equal Weight rating on the shares. The firm is aggregating models across Beverage/Food/HPC and updating price targets. This implies Kraft Heinz is below the low-end of its historical next twelve months price-to-earnings 3/5/12-year averages 12.4/13.0/16.8-times, with volatility in North America retail specifically, share losses in most top categories, and some long-term structural growth concerns, namely volume and investment needs amid already tight SG&A management. This puts the stock toward the peer set average currently in the 10-turns range, Wells adds.