- Mizuho analyst John J. Baumgartner reiterated the Buy rating on the shares of Kraft Heinz Co (NASDAQ:KHC) with a price target of $48.00.
- The analyst said that the market jitters about food industry pricing and tighter consumer budgets moderating demand at a faster rate are causes for investor concerns.
- Baumgartner added that their consumer surveys indicated a clear shift away from discretionary spending, increasing consumption, and trading down to lower-priced options across perimeter categories.
- Also Read: Kraft Heinz Sells This Business – As Part Of Active Portfolio Optimization
- Meanwhile, the analyst thinks the company is better positioned for three main reasons. First, the portfolio’s weakest links versus private label have been divested. Second, multi-year enhancements to ingredients better position Kraft to capture consumers trading down from higher-priced alternatives. Third, larger exposure to opening price point products and channels enhances portfolio appeal for cash-strapped consumers.
- Baumgartner thinks Kraft Heinz as an underappreciated defensive name.
- Price Action: KHC shares are trading higher by 1.37% at $36.55 on the last check Friday.
Snap Gets Price Target Cuts By Analysts Following Weak Sales Results, Shares Plunge
Snap Inc. (NYSE: SNAP) reported weaker-than-expected sales results for its first quarter.
Snapchat reported first earnings of one cent per share, which came ahead of the 1 cent loss estimate, on revenues of $988.6 million, which missed the $1.01 billion consensus estimate.
