Kraft Heinz downgraded to Sell from Neutral at Goldman Sachs
Goldman Sachs analyst Jason English downgraded Kraft Heinz to Sell from Neutral with an unchanged price target of $29. The stock closed Wednesday up 32c to $33.30. The shares are up 15% since the company reported Q3 results on October 31, English tells investors in a research note. However, he believes Kraft Heinz's profit will continue to "shrink" and that its EBITDA "has not yet found a floor." The company has under-invested in multiple areas and now faces renewed cost pressure in dairy, and potentially protein next year, contends the analyst. Further, he sees little opportunity for new cost savings and expects cost pressure to be only partially passed through successfully, "translating into sustained EBITDA erosion."