Kraft Heinz stock price target lowered to $28 from $30 at Stifel

Investing.com - Stifel has lowered its price target on Kraft Heinz Company (NASDAQ:KHC) to $28.00 from $30.00 while maintaining a Hold rating on the stock. The company, currently trading at $26.02, near its 52-week low of $25.44, offers a substantial 6.15% dividend yield. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The adjustment follows Kraft Heinz’s recent break-up announcement, which revealed plans to separate the company into two entities, with the growth company representing approximately 60% of the total business. This strategic move comes as the company maintains a strong free cash flow yield of 11%, despite recent challenges.

Stifel noted that Kraft Heinz shares underperformed following the announcement, which the firm believes was primarily due to the size of the proposed growth company and the lack of support from Berkshire Hathaway, the company’s largest shareholder with approximately 27% ownership.

The research firm specifically cited concerns about "the overhang of Berkshire potentially selling shares" as a key factor in its decision to reduce the price target.

Stifel also pointed to "the lack of a near-term catalyst" for Kraft Heinz as an additional reason for maintaining its Hold rating while lowering the price target.

In other recent news, Kraft Heinz Company reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $0.69, which was higher than the forecasted $0.64, marking a 7.81% surprise. Revenue also exceeded expectations, reaching $6.35 billion compared to the anticipated $6.25 billion. Despite these positive financial results, Moody’s Ratings has placed Kraft Heinz’s ratings under review for a potential downgrade following the company’s announcement of plans to separate into two distinct entities. This review includes various ratings associated with Kraft Heinz and its related companies. Additionally, Morgan Stanley has upgraded Kraft Heinz’s stock rating from Underweight to Equalweight, citing stabilization in the company’s performance. Mizuho has maintained its Neutral rating on the stock, noting improvements in execution and challenges within the portfolio. Warren Buffett has expressed disappointment over the company’s decision to split, a move that reverses the merger he helped orchestrate a decade ago.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.