KHC - Kraft Heinz falls after UBS turns bearish on inflation impact

UBS downgraded Kraft Heinz Company (NASDAQ:KHC) to a Sell rating from Neutral on concerns high inflation will impact sales and profits. Analyst Cody Ross and team warn that Kraft Heinz (KHC) is contending with one of the highest inflationary pressures over the next 12 months increasing the need to take another round of price this year, although that strategy is called unlikely in light of the commentary from Walmart and Target last week. "We believe it will be difficult for KHC to pass through additional pricing next year and by that time, KHC will likely be battling trade down pressure as consumers’ budgets are squeezed further." Kraft Heinz (KHC) is also noted to have pulled back significantly on promotions, compete in categories with greater trade down risk, and have what is described as arguably the highest risk to consumer trade down to private label. UBS forecasts Kraft's (KHC) organic sales

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Kraft Heinz falls after UBS turns bearish on inflation impact