Shares of Kraft Heinz Co. KHC, +5.24% slipped 1.2% in premarket trading Friday, to pull back from a 2-year closing high in the previous session, after J.P. Morgan analyst Ken Goldman downgraded the food and condiments company, citing valuation concerns. The stock has surged 10.2% over the past two days and 15.0% since it reported fourth-quarter results and the deal to sell its Planters nuts business before the Feb. 11 open, to close Thursday at $38.96, the highest closing price since Feb. 21, 2019. Goldman lowered his rating to neutral, after being at overweight since March 25, 2020, while keeping his price target at $41, which is just 5.2% above Thursday’s close. The stock has soared 69.5% since Goldman’s upgrade through Thursday, while the SPDR Consumer Staples Select Sector ETF XLP, -0.06% has rallied 28.7% and the S&P 500 SPX, -0.44% has run up 59.9%. “We had not anticipated the [Kraft Heinz] shares working this well this fast, but now that they have, we want to respect valuation and the potential limits to upside, as we see them,” Goldman wrote in a note to clients.
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