Following the company's Analyst Day, Wells Fargo maintained an Equal Weight rating on Kraft Heinz (NASDAQ:KHC) but revised its price target downward from $44.00 to $40.00. Key sessions at the analyst day were Digital, Supply Chain, Emerging markets (EM), and Foodservice.
The company continues to target 2-3% organic sales growth, with ~1pt from NA retail, ~1pt from Foodservice, and ~1pt from EMs.
Despite being light on financial updates, Wells Fargo noted that it was a positive day as it shed light on some recently popular buzzwords such as transformation, agile, and AI. The event highlighted the company's commitment to modernization and its efforts to differentiate itself from its competitors. However, Wells Fargo lowered its target based on approximately 14x (previously 15x) 2024 EPS.
Mizuho Securities analysts also shared their views on Analyst Day, noting they were positively surprised by significant innovation in U.S. sauces & condiments, deep insights into promo returns, and ramping data capabilities across the supply chain. “We would not be surprised to see benefits as early as 2024 including overhead savings and market share,” said the firm, reiterating its Buy rating and $50 price target.