UBS Concerned with Consumer Staples; Downgrades Coke (KO), Pepsi (PEP), Kellogg (K)

This morning, several UBS research reports painted a concerning picture for the consumer staples sector. The firm downgraded shares of Coca-Cola (NYSE: KO), Pepsi (NYSE: PEP) and Kellogg (NYSE: K) from Buy to Neutral, citing consumer weakness and local currency weakness against the U.S. dollar.

UBS has a $48 price target on Coca-Cola, a $57 price target on Pepsi, and cut Kellogg's price target from $57 to $50.

Investors seem to have mixed feelings about the analyst comments: shares of Pepsi and Kellogg are trading 0.9% and 0.3% higher, respectively, while shares of Coke are trading down more than 1.4%.

The Coca-Cola Company engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide.

PepsiCo, Inc. manufactures, markets, and sells snacks and beverages worldwide.

Kellogg Company, together with its subsidiaries, engages in the manufacture and marketing of ready-to-eat cereal and convenience foods.

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