Kraft Heinz Co shares fell 7.11% in pre-market trading, hitting a 52-week low amid concerns over Berkshire Hathaway's strategic divestment.
Berkshire Hathaway has formally registered its 27.5% stake in Kraft Heinz under new CEO Greg Abel, indicating a strategic move to exit a long-standing underperforming investment. Following the announcement, Kraft Heinz shares dropped 5%, reflecting market worries about the company's growth potential, especially given its sluggish performance across core brands. The registration allows Berkshire to gradually reduce its stake, highlighting the cautious approach to navigating market challenges.
This development raises questions about Kraft Heinz's future and its ability to recover from significant financial losses since the 2015 merger, where the stock has plummeted approximately 70%. Investors will be closely monitoring the company's next steps as it seeks to address operational pressures.
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
14 Hold
1 Sell
Hold
Current: 23.580
Low
24.00
Averages
25.86
High
28.00
Current: 23.580
Low
24.00
Averages
25.86
High
28.00
JPMorgan
Neutral
downgrade
$25 -> $24
2026-01-21
Reason
JPMorgan
Price Target
$25 -> $24
AI Analysis
2026-01-21
downgrade
Neutral
Reason
JPMorgan lowered the firm's price target on Kraft Heinz to $24 from $25 and keeps a Neutral rating on the shares ahead of the Q4 report on February 11. The firm sees the company's volume pressures persisting in 2026. Kraft faces ongoing volume declines and likely stepped up investments this year, the analyst tells investors in a research note.
BNP Paribas
Neutral -> Underperform
downgrade
$22
2026-01-21
Reason
BNP Paribas
Price Target
$22
2026-01-21
downgrade
Neutral -> Underperform
Reason
BNP Paribas downgraded Kraft Heinz to Underperform from Neutral with a $22 price target.
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Jefferies
Scott Marks
Hold
downgrade
$24 -> $23
2026-01-20
Reason
Jefferies
Scott Marks
Price Target
$24 -> $23
2026-01-20
downgrade
Hold
Reason
Jefferies analyst Scott Marks lowered the firm's price target on Kraft Heinz to $23 from $24 and keeps a Hold rating on the shares. The firm remains cautious given continued demand challenges, a difficult consumer backdrop, investment needs and uncertainty on the outlook for the post-split businesses, the analyst tells investors.
Morgan Stanley
Equal Weight -> Underweight
downgrade
$27 -> $24
2026-01-16
Reason
Morgan Stanley
Price Target
$27 -> $24
2026-01-16
downgrade
Equal Weight -> Underweight
Reason
Morgan Stanley downgraded Kraft Heinz to Underweight from Equal Weight with a price target of $24, down from $27. The firm says the U.S. food sector faces rising competitive risk as value-focused pricing, promotions, and private label momentum reaccelerate into 2026. These add to "already present" sales pressures and limit the scope for margin recovery, the analyst tells investors in a research note. Morgan Stanley believes Kraft Heinz "faces particularly acute risk" given its outsized private label penetration.
About KHC
The Kraft Heinz Company manufactures and markets food and beverage products around the world through its eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. The Company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials. Its brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell Apartment, Kool-Aid, Jell-O, Heinz, Golden Circle, Wattie’s, Plasmon, Heinz, ABC, Master, Quero, Kraft, and Pudliszki, among others. The Company’s products are sold through its own sales organizations and through independent brokers, agents, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
