UPDATE: Credit Suisse Downgrades Kraft Foods Group to Neutral, Lowers PT on Lack of Portfolio Progress

Loading...
Loading...
In a report published Thursday, Credit Suisse analyst Robert Moskow downgraded the rating on
Kraft Foods GroupKRFT
from Outperform to Neutral, and lowered the price target from $63.00 to $58.00. In the report, Credit Suisse noted, “We are lowering our rating on Kraft to Neutral. While we respect and appreciate the steps the company has taken to reduce overhead costs and revitalize its brands, we have yet to see enough progress from the portfolio as a whole to maintain an Outperform rating. Some may argue that the company is poised for stronger performance in 2015 as dairy costs roll over, price gaps with competitors close, and the company laps perhaps $90 million of costs from supply chain mishaps. But after two consecutive years of sub-par revenue growth, we harbor concerns as to whether Kraft's brands are strong enough to capitalize on those factors and drop the benefits to the bottom line. We are lowering our target price to $58/share (from $63) based on a 16.5x P/E against our 12-month forward estimate.” Kraft Foods Group closed on Wednesday at $56.91.
Posted In: Analyst ColorDowngradesAnalyst RatingsCredit SuisseRobert Moskow
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...