UPDATE: Credit Suisse Downgrades Annie's as Strong Growth But Spotty Execution Merits Lower Valuation
In a report published Tuesday, Credit Suisse analyst Robert Moskow downgraded the rating on Annie's (NYSE: BNNY) from Outperform to Neutral, and lowered the price target from $54.00 to $36.00.
In the report, Credit Suisse noted, “We are lowering our rating to Neutral on Annie's and lowering our TP to $36. While we still view Annie's as a great brand in the organic foods space with many years of revenue growth ahead, the frequency of execution errors over the past two years casts a cloud over the prospects for operating leverage in the business model.”
Annie's closed on Monday at $41.83.
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