03:43 PM EDT, 10/20/2025 (MT Newswires) -- Kraft Heinz ( KHC ) faces a "tricky" fiscal Q3 as weak fundamentals contend with investor optimism over its planned split, UBS Securities said.

The brokerage said in a Sunday note that substantial upside is unlikely without evidence of improving fundamentals or greater conviction that the upcoming transaction will unlock meaningful value, as the company heads into its Oct. 29 earnings report.

For Q3, UBS models EPS of $0.58, in line with Visible Alpha consensus. The firm expects slightly higher total revenue but lower gross and operating margins compared with the Street.

The firm projects adjusted EPS for 2025 of $2.61, within the company's guidance range of between $2.51 and $2.67. Analysts surveyed by FactSet expect $2.59.

UBS expects Kraft Heinz ( KHC ) to maintain its 2025 guidance, though management may indicate organic sales trending toward the lower end of the -3.5% to -1.5% range.

Organic sales for the 13 weeks ended Sept. 27 are down 3.9%, with volumes down 4%, while Emerging Markets show modest improvement. UBS models a Q3 organic sales decline of 1.6%, versus the Street's -2.2% estimate.

The firm has a neutral rating on the stock, with a price target of $27.

Shares of Kraft Heinz ( KHC ) were up 1% in recent Monday trading.

Price: 25.78, Change: +0.26, Percent Change: +1.02