UPDATE: J.P. Morgan Downgrades ConAgra Foods Following Model Review

In a report published Tuesday, J.P. Morgan analyst Ken Goldman downgraded the rating on

from Overweight to Neutral, and lowered the price target from $36.00 to $34.00. In the report, J.P. Morgan noted, ““Last week, we maintained our Overweight rating following the company's negative pre-announcement. We then maintained it again after uncovering some Nielsen-related data points we interpreted as less than positive. But today we are capitulating, as we are lowering our numbers following a review of our model. We are starting to think consensus estimates contain downside risk: FY14E goes to $2.30 from $2.34 (consensus $2.37) and FY15E to $2.58 from $2.65 (consensus $2.65). And though we continue to see upside to guidance from cost synergies, we now think this is less important than the possibility that CAG's sales disappoint for more than a quarter or two. As mentioned above, we think investors will favor better top lines for a while, an environment that does not necessarily favor ConAgra today.” ConAgra Foods closed on Monday at $31.88.