Kraft Heinz lands buy rating from Mizuho in first ratings look
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Kraft Heinz Company (NASDAQ:KHC) tracked higher in premarket trading on Monday after Mizuho Securities initiated coverage on the food stock with a Buy rating.
KHC is seen as well-situated for a potential recession due to its outperformance across many categories during the 2008-2009 economic downturn. Improvements to the product lines are expected to help Kraft compete in the grocery aisles even strong against its packaged food rivals. The refreshed portfolio of offerings is also noted to be well-liked by both higher-income and younger households.
"The Street remains skeptical of KHCâs ability to deliver on its stated growth objectives with what they see as an off-trend portfolio which is challenged for growth," wrote analyst John Baumgartner.
Baumgartner also believes the companyâs new management is leading the company on a profitable path.
Baumgartner and team think the Street is wrong on KHC and that the weak historical execution is in the rear view mirror and the company is poised to grow faster than expectations.
Shares of Kraft Heinz (KHC) rose 0.89% premarket to $38.35.
KHC currently has a dividend yield of 4.21% for new buyers. Dig into the dividend grades on KHC.