Kraft Heinz Co. stock reportedly may have finally hit bottom but faces an uphill battle to recover from its recent missteps

Kraft stock (KHC) has lost almost 30% in 2019, Barron’s reported.

Evercore ISI analyst David Palmer initiated coverage of Kraft with an In-Line rating and $32 price target. He writes that the incoming CEO, Miguel Patricio (who starts work in July) will have his work cut out for him.

However, after the stock has lost half its value in the past year, it may finally be near a bottom.

“An information vacuum and a likelihood of dilutive asset sales may have created a ‘buyer strike’ in our view, but shares appear to price in all but the most dramatic cases of reinvestment,” Palmer says.

Last month, the company said it would restate financial reports for a near three-year period to fix errors that resulted from lapses in procurement practices by some of its employees, Reuters reported.

Kraft Heinz said it expects to report its delayed first-quarter results on or before July 31.

The packaged foods company, in a long overdue annual regulatory filing on Friday, said a United States Attorney’s Office for the Northern District of Illinois is reviewing this matter.

Kraft Heinz had disclosed a SEC subpoena in February. Thereafter, the company initiated an investigation into the procurement practices.

As a result of the internal investigation and material weaknesses spotted, Kraft Heinz said it is taking steps to improve internal policies and would strengthen internal control in financial reporting.

“We are pleased that Kraft Heinz is returning to a path of normalization,” Kraft Heinz Chairman Alex Behring said.