Market Overview

UPDATE: Credit Suisse Downgrades Kellogg Company to Underperform on Valuation

Share:
Related K
Organic Food Goes Mainstream
Calls Of Note: The Street's Research Moving Stocks This Wednesday
Kellogg on watch for activist movement (Seeking Alpha)

Credit Suisse downgraded Kellogg Company (NYSE: K) from Neutral to Underperform.

Credit Suisse said, "We are downgrading Kellogg to Underperform (from Neutral) primarily on the basis of valuation. We think the 10% jump in the stock since the company reported 3Q results is unwarranted given management's tepid outlook for 2013, the persistent business challenges in Europe (17% of sales) and Mexico (4% of sales), and the likelihood of a strong response from General Mills in 2013 to its recent market share losses in U.S. cereal. The devaluation of the Venezuelan currency (perhaps $0.04-$0.05 to EPS) is probably an issue as well. Eventually, we believe Kellogg will find its way back to the high quality company it once was. We just think that market is overly optimistic about how soon it will get there."

Kellogg Company closed at $57.12 on Tuesday.

Latest Ratings for K

DateFirmActionFromTo
Aug 2015Societe GeneraleUpgradesSellHold
Aug 2015CitigroupUpgradesNeutralBuy
Jun 2015Deutsche BankMaintainsHold

View More Analyst Ratings for K
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (K)

View Comments and Join the Discussion!

Get Benzinga's Newsletters