Stifel Lowers Price Targets for Kraft Heinz, Kellogg, Smucker, Conagra

Stifel analyst Matthew Smith has lowered the price targets for several food companies, citing a weak revenue outlook and reinvestment pressures affecting margins. For Kraft Heinz, the target was adjusted to $32 from $35, while WK Kellogg's target was lowered to $18 from $19. J.M. Smucker's price target is now $120, down from $125, and Conagra Brands saw its target drop to $28 from $30. Despite these reductions, Stifel maintains a Neutral weighting for the food group, emphasizing that the valuation remains attractive relative to historical levels. The firm anticipates a 3% EPS growth for the food sector in 2025, supported by 2% organic sales growth, although margin compression due to inflation and investment levels could pose challenges. Overall, the outlook remains cautious amidst uncertainties in revenue growth pacing.