Kraft Heinz (KHC, Financial) has been downgraded by Bernstein from 'Outperform' to 'Market Perform,' with its target price adjusted to $31, down from a previous $34. Analyst Alexia Howard has noted persistent challenges within the company's traditional U.S.-centered product lines.
Despite notable developments such as overcoming supply chain issues for certain product lines in February and anticipating the diminishing effects of a negative Consumer Reports article targeting Lunchables in April, the company continues to face hurdles. Notably, Kraft Heinz is experiencing a volume decline across key brands, including Lunchables, Kraft Mac and Cheese, Capri Sun, and Oscar Mayer.
These factors have contributed to Bernstein's tempered expectations for Kraft Heinz, reflecting in the updated investment rating and revised price target.
