Mizuho Securities started coverage of the Kraft Heinz Co. at buy with a $48 stock price target on Monday. “Since July 2015’s merger of Kraft and Heinz, investor sentiment has careened between euphoria and despair,” wrote Mizuho analyst John Baumgartner, in a note. “Negativity has improved from the 2019/2020 nadir, but we believe the Street continues to underestimate (and undervalue) growth potential.” Kraft Heinz has a “a portfolio with potential,” according to Baumgartner, who also pointed to the company’s improving execution. “Pre-COVID growth challenges resulted from prior management’s focus on cost savings, and misinterpretation of weak execution for structural headwinds, offers upside,” he wrote. “Marketing is increasing and resources concentrate on higher-margin, growth-accretive categories.” Of 22 analysts surveyed by FactSet, 5 have a buy rating on Kraft Heinz, 14 have a hold rating and 3 have a sell rating. Kraft Heinz shares rose 1.4% to $38.53 Monday. The company’s stock has risen 7.3% in 2022, compared to the S&P 500’s decline of 18.4%.
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