Investing.com -- RBC Capital Markets initiated coverage of Kraft Heinz at Outperform with a $32 price target in a note Thursday, arguing the packaged food maker is on the cusp of a return to growth that the market is underestimating.

Analyst Nik Modi told investors that a divisional deep dive and conversations with trade contacts point to "real change at the company," with the benefits showing more fully in 2027.

He sits above consensus on both organic revenue growth and earnings for that year, modeling 0.9% organic growth versus the Street's 0.4%.

Modi said the company's "seesaw," the balance between its growing and declining businesses, should tilt in its favor in 2027, helped by $700 million of reinvestment in price, innovation and marketing that is already having an impact.

Innovations such as PowerMac and Capri Sun Hydrate are addressing real consumer needs rather than just defending shelf space, he said.

Feedback from retailers was positive, according to the analyst, who said every trade discussion described Kraft Heinz's 2027 innovation slate as robust and strategically focused, with better collaboration on joint business plans. He argued that this contrasts with investor assumptions that progress will stall.

Modi also addressed key debates around the stock, including exposure to GLP-1 weight-loss drugs, private label competition and a potential sale of shares by Berkshire Hathaway.