Kraft Heinz's stock falls after analyst swings from bullish to bearish

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  1. sniper-academy

    sniper-academy Administrator Staff Member

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    Shares of Kraft Heinz Co. fell 0.7% in morning trade Monday, after Credit Suisse swung to bearish from bullish on the processed food and beverage company, citing concerns over the company's ability to prioritize growth over margins. Analyst Robert Moskow cut his rating to underperform, after being at outperform since he started covering the company in July 2015, and slashed his stock price target to $55 from $77. He said the company's expertise in cutting costs and price realization worked well when all of its peers were forced to do the same, but the playing has become more competitive now that retailers like Walmart Inc. and Kroger Co. are demanding more to drive growth. "We harbor serious doubts about the management team's ability to generate sufficient product innovation to grow its collection of 'retro' brands in highly commoditized categories," Moskow wrote in a note to clients. The stock has been hovering just above the near 3 1/2-year closing low of $60.03 hit on March 23. It has tumbled 22.2% year to date, while the SPDR Consumer Staples Select Sector ETF has lost 7.0% and the S&P 500 is little changed.

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