Kraft Heinz's (KHC) execution of its Accelerate platform has significantly slowed down in recent quarters, clouding prospects for a meaningful organic sales improvement over the next 12 months, BofA Securities said Thursday.
The firm downgraded the stock to underperform from buy and lowered the price target to $30 from $36 following what it described as disappointing initial fiscal 2025 guidance.
The company's Accelerate platform, which refers to its strategy to spur growth in its food and beverage brands in North America, faces key challenges and a turnaround is necessary to support valuation and share price rebound, the firm said in a note.
BofA also said the company's current growth algorithm goal of 2% to 3% is "overly ambitious."
"Issues across condiments, Mac & Cheese and Lunchables are unlikely to abate in the near term and face continued headwinds/laps until 2H25 at the earliest," it said.
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