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On Thursday, Stifel analysts adjusted their outlook on Kraft Heinz Company (NASDAQ:KHC) stock, reducing the price target from $32.00 to $31.00 while maintaining a Hold rating. The revision follows Kraft Heinz’s release of its fourth-quarter earnings, which presented a complex picture of the company’s performance. Currently trading at $28.79, near its 52-week low of $27.25, InvestingPro analysis suggests the stock is undervalued, with additional insights available in the comprehensive Pro Research Report.
Kraft Heinz experienced a decline in organic sales by 3.1%, including a 4.1% drop in volume, although this was slightly mitigated by a 1% increase due to pricing. The earnings per share (EPS) for the quarter reached $0.84, signifying an 8% increase and surpassing Stifel’s estimate by $0.05, aided by a $0.06 benefit from below-the-line items such as a lower tax rate. Despite these challenges, the company maintains a solid P/E ratio of 12.59 and offers a significant dividend yield of 5.59%, according to InvestingPro data.
The company’s North American operations saw volumes decrease by 4.5%, with North America Retail Accelerate organic sales falling by 5.2%. This marked a slight sequential deceleration. In light of the most recent earnings report, Stifel has revised its 2025 forecasts for the company’s organic sales, profit, and EPS, taking into account a slower recovery in North American volumes. Although improvement is anticipated throughout the year, the volumes are expected to remain in negative territory.
The initial guidance for 2025 provided by Kraft Heinz was below Stifel’s estimates, prompting the firm to adjust its projections. Despite these challenges, Stifel continues to recommend a Hold rating on Kraft Heinz stock, suggesting a neutral stance on the company’s near-term investment potential.
In other recent news, Kraft Heinz has been under the microscope of several analysts following its fourth-quarter results. Bernstein analysts, led by Alexia Howard, lowered the price target for Kraft Heinz to $34, yet retained an Outperform rating. The company’s performance showed a decrease in organic sales by 3.1%, but surpassed expectations in terms of margins and earnings per share (EPS). The Bernstein team highlighted Kraft Heinz’s efforts to enhance its top-line results, particularly through increased focus on marketing and innovation.
CFRA analyst Arun Sundaram also adjusted the 12-month price target for Kraft Heinz, bringing it down to $32, while maintaining a Buy rating. Despite a decline of 3.1% year-over-year in organic sales, CFRA maintains a positive stance on Kraft Heinz stock, expecting potential improvement by the second quarter of 2025.
Stifel analysts maintained their Hold rating on Kraft Heinz shares, with a steady price target of $32.00. The company reported a 3.1% drop in organic sales for the quarter, attributed to a 4.1% fall in volume/mix that was slightly mitigated by a 1.0% gain from pricing.
Jefferies analyst Rob Dickerson adjusted the price target for Kraft Heinz stock to $30.00, while maintaining a Hold rating. The company’s strategic choices during a critical sales period have led to a more cautious outlook from Jefferies.
Lastly, Citi analyst Thomas Palmer revised the price target for Kraft Heinz shares to $34, while still maintaining a Buy rating. Despite potential challenges for the company in 2025, Palmer suggested that the current stock price may have already factored in the potential negative impact on the company’s 2025 financial performance. These recent developments provide an insightful overview of Kraft Heinz’s current market standing.
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