Kraft Heinz (KHC) has not been a story of growth in recent years. Volumes are down, revenues are under pressure, and the stock is trading below its 52-week high price. However, according to RBC Capital Markets, it appears that investors might have overlooked what lies ahead.
RBC recently initiated its coverage of Kraft Heinz with a price target of $32 and an “Outperform” rating. Analyst Nik Modi forecasts that the packaged food giant will start organic growth in 2027 when its organic revenue growth is estimated to reach 0.9% versus the consensus estimate of 0.4%. The thesis is partially driven by approximately $700 million of additional investments into pricing, innovation, and marketing in 2026. As a result, 2027 will be the test year for Kraft Heinz: the company has to show that increasing investment into its brands can lead to higher volumes and growth of revenues.
