WMT - Kraft Heinz is unduly maligned near-term upside is meaningful - BofA

Kraft Heinz (NASDAQ:KHC) gets a worse rap than it deserves, according to Bank of America analyst Bryan Spillane. In a note to clients on Thursday, the analyst advised that the stock’s recent selloff and associated negative sentiment surrounding the stock are overdone. While Spillane acknowledged that execution at the company has been challenged in recent years, it is actually well-positioned at present. Spillane rebutted key arguments about inflation pressure, private label exposure, and read through from major retailers specifically. He pointed to automation initiatives, pricing actions, and partnerships with retailers as important insulating factors amid inflation. For private label exposure, he noted Kraft Heinz (KHC) is “in the middle of the pack relative to peers” and that orderly price competition is anticipated even in commoditized categories where Kraft Heinz (KHC) has maintained market share. Finally, Spillane suggested that Kraft Heinz (KHC) was unfairly punished for disappointing results at consumer staples

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Kraft Heinz is unduly maligned, near-term upside is meaningful - BofA