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By Sam Boughedda
Investing.com — Shares of Kraft Heinz Co (NASDAQ:) tumbled Thursday after a UBS analyst downgraded the inventory to Promote from Impartial, trimming its worth goal to $34 per share from $40.
Analyst Cody Ross mentioned they’re downgrading the inventory primarily based on their trade commerce down evaluation report.
“KHC is contending with one of many highest inflationary pressures over the subsequent 12 months, growing their must take one other spherical of worth this 12 months, which we consider is unlikely in gentle of WMT’s and TGT’s commentary final week,” wrote Ross.
He added that the corporate “has pulled again considerably on promotions, competes in classes with larger commerce down danger, and has arguably the very best danger to shopper commerce down to personal label.”
“If the corporate is just not capable of go by pricing in 2H22, we
consider this could function a detrimental catalyst to the shares,” Ross mentioned.
Kraft Heinz shares are down 7.75% Thursday.
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