Guggenheim lowers its rating on Kraft Heinz (KHC-2.7%) to Neutral from Buy as it weighs the impact of severe cost inflation.
"Kraft Heinz portfolio's lack of pricing power is getting more apparent as weeks pass, which, in our view, has a significant consequence in near term top and bottom line growth, but also longer term as it alters the implementation of the critical strategic plan revealed a year ago."
Guggenheim assigns a price target of $33.
After falling about 21% over the last six months, KHC now trades with a dividend yield of over 4.6% for new investors. Read what Seeking Alpha author Gen Alpha says about the KHC dividend payout.