Kraft Heinz stock upgraded twice with analysts upbeat about ongoing business transformation

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Kraft Heinz is undergoing a business transformation that includes a changes to the product lineup.

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Kraft Heinz Co. was upgraded twice, at CFRA and at Guggenheim, after the food company’s investor day, which laid out a go-forward strategy focused on customer eating habits, partnerships and efficiencies. CFRA raised Kraft Heinz’s rating to buy from hold, and moved
its 12-month target to $37 from $35.

“We left the meeting with a clearer picture and more
confidence that Kraft Heinz can once again return to sustainable earnings
growth,” wrote Arun Sundaram, analyst at CFRA Research.  Kraft Heinz
KHC,
-1.90%
said it expects to cut $2 billion in costs over the next five years, which will help generate 4% to 6% adjusted earnings per share growth. See: Starbucks’ Pumpkin Spice Latte still drives traffic and could be a source of holiday season inspiration for retailers The food giant also announced that it would sell some of its cheese business to France-based Groupe Lactalis for $3.2 billion. Brands like Kraft Singles, Velveeta, Philadelphia and the company’s iconic macaroni and cheese will remain part of the Kraft Heinz lineup. Guggenheim upgraded Kraft Heinz to neutral from sell and raised its price target to $34 from $30. Analysts say …

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