UPDATE: J.P. Morgan Downgrades Kellogg Company to Underweight, Lowers PT on Recommended Cautious Stance

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

from Neutral to Underweight, and lowered the price target from $65.00 to $58.00. In the report, J.P. Morgan noted, “We recommend investors exhibit a level of caution with Kellogg. Because of our top line concerns, we are lowering 2013E to a Street-low $3.71 from $3.75 (consensus $3.79), and 2014E to $4.00 from $4.02 (consensus $4.09). We observe the particularly difficult comparison approaching in 4Q13E. Our concern derives from slumping trends in Nielsen Co. xAOC-tracked channels, which we think could cause the company to report lower-than-expected earnings. We establish a December 2014 price target of $60; our previous December 2013 target was $65. We expect some pushback on this call, as K already has fallen 11% in the last month (SPX flat). But the group as a whole has not performed much better (-3% median over the last month) and K's short interest ratio is well off its summer peak. K may not have enough downside ‘juice' left to be a strong absolute short, but on a relative basis we might pair it against other names we prefer.” Kellogg Company closed on Monday at $60.64.