Jefferies Raises Kraft Heinz (KHC) Price Target, Raises Rating to Neutral
The Kraft Heinz Company (NASDAQ:KHC) is one of 10 consumer defensive stocks to buy now.
Goldman Sachs has raised its rating on The Kraft Heinz Company (NASDAQ:KHC) to Neutral from Sell, lifting its price target to $27 from $25. The upgrade reflects what the firm describes as a more balanced risk/reward outlook, even as near-term sales pressures persist. In a note to investors, Goldman analysts acknowledged ongoing concerns, including continued softness in scanner data and declining sales and market share across several of Kraft Heinz's core categories. These challenges, they noted, remain central to the company's struggle to regain momentum in a competitive consumer environment.
A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.
However, the firm pointed to Kraft Heinz's portfolio of iconic brands as a key asset. With the company recently announcing a review of strategic alternatives, Goldman sees the potential for shareholder-accretive actions that could drive future upside. While details of any possible actions remain unclear, the review signals management's willingness to pursue structural changes to unlock value. Despite the cautious stance on fundamentals, Goldman now views the downside risk as more limited. As the company evaluates options and works to stabilize performance, the market may begin to respond more favorably to clearer signs of a turnaround.
While we acknowledge the potential of KHC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KHC and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: and 10 Best Wide Moat Dividend Stocks to Invest in.
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