UPDATE: Goldman Sachs Downgrades H.J. Heinz to Sell

Goldman Sachs is out with its report today on H.J. Heinz

, downgrading HNZ to Sell. In a note to clients, Goldman Sachs writes, "We are downgrading Heinz to Sell as we believe the shares will underperform relative to our coverage universe over the next 12 months. HNZ trades at a premium to its peers but its organic growth has begun to lag – a recent phenomenon that we expect to continue. Its core developed market business (around 85% of profits) looks vulnerable given slowing innovation and marketing under-investment. Its emerging market business is growing, but still nascent and faces execution risk. We see the stock's recent strength as an opportunity to take profits and believe the shares will lag peers going forward as growth lags and its relative premium fades." At the time of posting, shares of HNZ were trading pre-market at $53.85, down 1.95% from Tuesday's close.