Goldman Sachs Downgrades Kraft Heinz Company (KHC) to Sell

(Updated - November 14, 2019 5:04 AM EST)

(update comment)

Goldman Sachs analyst Jason English downgraded Kraft Heinz Company (NASDAQ: KHC) from Neutral to Sell with a price target of $29.00.

The analyst comments "Hope that step one of the turnaround – stabilizing EBITDA – is within reach was bolstered when management delivered a less substantial than expected YoY EBITDA decline for 3Q19; however, we believe that EBITDA has not yet found a floor. In our view, the company has under-invested in multiple areas and now faces renewed cost pressure in dairy, and potentially protein next year. We see little opportunity for new net-cost savings (net of investment needs) and expect cost pressure to be only partially passed through successfully, translating into sustained EBITDA erosion."

For an analyst ratings summary and ratings history on Kraft Heinz Company click here. For more ratings news on Kraft Heinz Company click here.

Shares of Kraft Heinz Company closed at $33.30 yesterday.

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