Sam Boughedda

Investing.com — Shares of Kraft Heinz Co (NASDAQ:) tumbled Thursday after a UBS analyst downgraded the stock to Sell from Neutral, trimming its price target to $34 per share from $40.

Cody Ross, an analyst said that they have downgraded the stock on the basis of their analysis of industry trades down.

Ross stated that KHC will be facing the greatest inflationary pressures for the next twelve months. He added, “Increasing their need to price this year is more likely in light WMT’s or TGT’s comments last week.”

He stated that “the company has pulled back on promotions and competes with categories with higher trade down risks, and has perhaps the highest consumer risk to trade down into private label.”

We will not accept a company that is unable to pay through 2H22 pricing.
Ross believes that this could be a destabilizing factor for shares.”

Kraft Heinz stock is down 7.75% for Thursday