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Investing.com - Mizuho has reiterated its Neutral rating and $29.00 price target on Kraft Heinz Company (NASDAQ:KHC) following investor meetings that highlighted both improvements in execution and ongoing portfolio challenges. According to InvestingPro data, the stock appears undervalued, with analyst targets ranging from $27 to $51.
The research firm noted that Kraft Heinz understands the portfolio challenges that have pressured market shares and that execution is improving. Renovation and innovation were identified as top priorities, with significant activity from new products, marketing, and trade expected in the second half of the year. InvestingPro analysis reveals that 14 analysts have recently revised their earnings expectations downward for the upcoming period, highlighting the importance of these strategic initiatives.
Regarding the "strategic transactions" announced on May 20, 2025, Mizuho reported that details remain limited with no timeline established, though Kraft Heinz is working "with urgency" and assessing "all the pros and cons of all paths." The company is placing high importance on protecting its dividend and investment-grade status. Currently, the stock offers a substantial 5.7% dividend yield, making it one of the significant dividend payers in the consumer staples sector.
Mizuho believes pressure on industry valuations has created a modest positive risk/reward scenario for Kraft Heinz shares. Signs of improved revenue traction or strategic news could further enhance this outlook.
The firm cautioned that uncertain macroeconomic conditions and competition continue to limit positive revisions to revenue projections for Kraft Heinz.
In other recent news, Kraft Heinz Co. reported its second-quarter earnings for 2025, which exceeded Wall Street’s expectations. The company announced an earnings per share (EPS) of $0.69, surpassing the projected $0.64, marking a 7.81% surprise. Revenue also came in strong at $6.35 billion, above the anticipated $6.25 billion. These results highlight Kraft Heinz’s ability to perform well despite market challenges. However, the company faced investor concerns due to a significant non-cash impairment charge. This development contributed to a decline in pre-market trading. Analysts continue to monitor the company’s financial health closely. Such earnings performance underscores the importance of Kraft Heinz’s strategic decisions in navigating the current market landscape.
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