Kraft Heinz Stock Slips As Analyst Lowers Price Target: Retail Mood Sours
By Stocktwits Inc | First Published Dec 24, 2024, 2:21 AM ISTRetail sentiment on the stock turned ‘bearish’ from ‘neutral’ a week ago. Message volumes have remained low.
Shares of food and beverage maker Kraft Heinz Co ($KHC) were down 0.3% on Monday as the company received a price target reduction by analyst firm Mizuho, with retail sentiment sliding.
Mizuho lowered the firm's price target to $38 from $41 with an Outperform rating, The Fly.com reported, citing “continued uncertainty about demand related to GLP-1s and new regulatory concerns” that are likely to limit investor appetites to own the space in the near term.
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According to the firm, 2025 will begin with near 20-year valuation lows compared to the S&P 500 and has softer expectations for earnings per share as volumes and pricing power are constrained.
Retail sentiment on the stock has turned bearish from neutral a week ago. Message volumes have remained low.
According to Investing.com, the stock appeared undervalued as it reflected a significant retreat from its previous levels, showing a strong contrast from its track record and performance last year.
In November, Kraft was reportedly facing a possible class action lawsuit about its Mac & Cheese product based on claims it misled consumers about containing no artificial flavors, preservatives, or dyes.
"We stand fully behind our product and are proud of its quality," the company said. "We strongly believe that this lawsuit has no merit and look forward to our day in court."
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