Morgan Stanley Reiterates Underweight Rating on Kraft Heinz Company (KHC)

Morgan Stanley analyst Megan Clapp reiterated an Underweight rating and $28.00 price target on Kraft Heinz Company (NASDAQ: KHC).

The analyst comments "What to do with stock? We are UW rated, as we have been bearish on the company's ability to drive significant improvements in its market share performance without significant investments pressuring profitability. However, it has admittedly been more of a relative UW and we'd note that we don't see much risk into 2Q earnings, with Street estimates looking OK based on recent scanner trends and, while 2H OSG forecasts are arguably still too high, KHC may have some flex given it embedded an onerous tariff assumption in its FY EPS outlook. Investor sentiment has also been weak/apathetic and so despite our initial SOTP analysis suggesting minimal value accretion (albeit requiring many assumptions), we suspect the stock will find support until there is more clarity on any potential proposed transaction."

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 $27.14 yesterday.

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