Kraft Heinz upgraded to Outperform from Market Perform at Bernstein

Bernstein upgraded Kraft Heinz to Outperform from Market Perform with an unchanged price target of $40. The analyst believes the pullback in the stock price is overdone. The risk/reward for the food sector is now more balanced, with near-term performance skewed to the upside, the analyst tells investors in a research note. The firm we sees an overreaction to GLP-1’s impact on future food volumes, and believes the risk/reward for the sector is modestly attractive at these current levels. It cites Kraft Heinz’s “cheap valuation,” fair relative positioning in a GLP-1 world given its protein-forward portfolio in the U.S., and an improved business model implemented under Miguel Patricio for the upgrade.