| Make foodmate.com your Homepage | Wap | Archiver
Advanced Top
Search Promotion
Search Promotion
Post New Products
Post New Products
Business Center
Business Center
 
Current Position:Home » News » Processed Foods » Savory Snacks » Topic

Canaccord Genuity downgrades Kraft Foods Group rating

Zoom in font  Zoom out font Published: 2013-11-01  Views: 48
Core Tip: In a report published Thursday, Canaccord Genuity analyst Alicia Forry downgraded the rating on Kraft Foods Group from Buy to Hold, but reiterated the $59.00 price target.
In a report published Thursday, Canaccord Genuity analyst Alicia Forry downgraded the rating on Kraft Foods Group from Buy to Hold, but reiterated the $59.00 price target.

In the report, Canaccord Genuity noted, “Q3 results reveal a mixed message. EPS excluding a gain was $0.70, ahead of consensus of $0.68, but revenue was c. 4% light. Kraft grew volumes on an underlying basis ahead of the market (+1% vs. market -0.5%), as innovation began to pay off. However, traffic to retailers has fallen sharply in recent weeks and management sounded cautious about the consumer environment. It is reassuring that Kraft's cost savings and innovation programmes remain on track, but the retail environment is still very promotional resulting in negative pricing-net-of-cost at group level. As a result, the payoff from marketing investments is going to be slower. The upcoming SNAP funding cuts of $5bn in November are likely to add pressure to the roughly 15% of American consumers dependent on food stamps. Furthermore, the later timing of Thanksgiving this year may impact consumers' budgets heading into the holidays. It is also unclear whether the government shutdown will hurt Q4.”

Kraft Foods Group closed on Wednesday at $55.44.


 
 
[ News search ]  [ ]  [ Notify friends ]  [ Print ]  [ Close ]

 
 
0 in all [view all]  Related Comments

 
Hot Graphics
Hot News
Hot Topics
 
 
Processed in 0.375 second(s), 17 queries, Memory 0.85 M
Powered by Global FoodMate
Message Center(0)