UPDATE: JP Morgan Downgrades Mead Johnson Nutrition to Neutral on Top-Line Concerns

JP Morgan downgraded Mead Johnson Nutrition Company

from Overweight to Neutral and lowered the price target from $71.00 to $68.00. JP Morgan said, "With the stock trading at 20.5x NTM P/E and 13.2x EV/EBITDA, valuation metrics are near the high end of all consumer staples despite a great deal of uncertainty around near-term fundamentals. We are increasingly concerned about the top-line potential in 2013, and we think margins will get hit in 2H13 by higher dairy costs. We still consider MJN a fundamentally strong company but would look for a better entry point before buying the shares." Mead Johnson Nutrition closed at $66.96 on Wednesday.