Deutsche Bank on Kraft Heinz Company (KHC): 'We view today's results as relatively disappointing'
Deutsche Bank analyst Steve Powers reiterated a Buy rating and $42.00 price target on Kraft Heinz Company (NASDAQ: KHC).
The analyst comments "We view today's results as relatively disappointing. Although FY24 estimates are unlikely to move materially based on guidance, FY4Q organic sales (-0.7% vs. DBe: +2.0%/Street: +1.3%),1 operating profits, and EBITDA all came in light of DBe/ Street forecasts2 even if gross margins finished slightly better (34.8% vs. DBe: 34.4%/Street: 34.4%) and EPS came in a penny above consensus on lower taxes ($0.78 vs. $0.77). Looking ahead, the company is looking to see momentum improve once last year's decline in SNAP benefits is cycled. However, with 1Q24 trends now expected to resemble 4Q23, this will result in a more back-end loaded year than previously anticipated with assumed improvements still to-be-seen. We thus expect most questions coming out of the quarter to focus on efforts to improve momentum in US retail channels."
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Shares of Kraft Heinz Company closed at $36.13 yesterday.