Market Perform -> Underperform
downgrade
Reason
Bernstein analyst Alexia Howard downgraded Kraft Heinz to Underperform from Market Perform with a price target of $21, down from $25. New CEO Steve Cahillane announced plans to invest another $600M into the business in the form of marketing, lower prices, sales personnel, and renovation, the analyst tells investors in a research note. The firm says this pushed Kraft Heinz's expected 2026 leverage to 3.8 times and the dividend payout ratio to roughly 60%, "which then begs the question of how sustainable this new model is." Bernstein cites commodity inflation and the company's limited pricing power for the downgrade.
