Kraft Heinz Company (KHC) PT Lowered to $30 at Stifel

Stifel analyst Matthew Smith lowered the price target on Kraft Heinz Company (NASDAQ: KHC) to $30.00 (from $31.00) while maintaining a Hold rating.

The analyst commented, "Kraft Heinz reported a better than expected first quarter with organic sales in-line with our expectations and profit stronger driven by lower variable compensation expense. Organic sales were down 4.7% including a 5.6% volume decline which included a ~100bps headwind from the Easter timing shift. EPS of $0.62 represented a 10% decline and was $0.02 ahead of our estimate. North America trends remain weak with volume/mix down 7.1% in 1Q25, down from the 4.5% decline in the fourth quarter in part due to Easter phasing. The company lowered its 2025 outlook due to lower Away From Home expectations, increased commodity inflation, the inflationary impact of tariffs and regulations, and volume elasticity. We are lowering our FY25 EPS estimate to $2.60, down $0.07, related to the increased investments in price/ marketing, lower sales expectations, and lower margin expectations. We continue with our Hold rating and lower our target price to $30."

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