Kraft Heinz gains after Goldman Sachs makes bullish outlier call on the food stock
Alex Wong

Kraft Heinz Company (NASDAQ:KHC) moved higher in premarket trading on Monday after Goldman Sachs upgraded the food stock to a Buy rating from Neutral.
Analyst Jason English pointed to favorable conditions and valuation that looks attractive.
Kraft Heinz (KHC) is seen being is better positioned than a few years ago due to its lower mix of private label revenue and after making key divestitures. English thinks KHC will re-rate higher on a valuation basis as the food sector becomes more favorable with headwinds easing.
The call from Goldman Sachs on KHC is an outlier because it is cautious on consumer staples in general.
"Relative valuation levels for Staples are daunting; now even richer than the onset of the last recession... The group mostly seems less defensive to us today given the less support to our multiples especially if the groupâs P/E recouples with rates. That said, some sub-sectors are richer than others and relative value can still be found."
Shares of KHC moved up 2.05% premarket to $33.70.
Read the latest breakdowns on Kraft Heinz from Seeking Alpha authors.