UPDATE: Stifel Downgrades Pinnacle Foods to Hold, Removes PT on News of Hillshire Brands Purchase

In a report published Tuesday, Stifel analyst Christopher Growe downgraded the rating on

from Buy to Hold, and removed the $31.00 price target. In the report, Stifel noted, “Hillshire Brands (HSH-$35.76-Not Rated) has agreed to purchase Pinnacle Foods for $18 in cash and 0.5 shares of HSH per share of Pinnacle ($35.88 based on Monday's closing prices). With the Pinnacle share price pushing up to within 4% or so of the takeover value, we are moving to a Hold rating from Buy. We do not foresee a competitive bid emerging for Pinnacle and given the stock component of the proposed transaction, we think the risk profile has increased.” Pinnacle Foods closed on Monday at $34.47.