Jefferies Downgrades Kraft Foods (KFT) to Hold

Jefferies downgraded Kraft Foods (NYSE: KFT) from Buy to Hold with a price target of $41 (up from $40).

The firm comments, "KFT's FY12 9% adj. EPS guidance (bottom end of the company’s LT range) combined with SKU reductions and pension contributions point to a y-o-y slowdown for the company. In our view, this would set up KFT for a strong performance post-separation in 2013. 2012, however, appears to be a year of investment and we expect limited upside for the next 2-3 quarters until the focus shifts to the post-separation outlook."

Jefferies trimmed FY12 EPS from $2.76 to $2.70.

For an analyst ratings summary and ratings history on Kraft Foods click here. For more ratings news on Kraft Foods click here.

Shares of Kraft Foods closed at $38.27 yesterday.

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