UBS Downgrades Kellogg (K) to Neutral; Questioning Long-Term Growth

UBS downgraded Kellogg (NYSE: K) from Buy to Neutral with a price target lowered from $61 to $53.

UBS analyst says, "We are lowering our EPS estimates due to higher-than-expected reinvestment in supply chain improvements and worse-than-expected declines in developed international markets (e.g. UK and Australia). Our 2011E and 2012E EPS estimates drop to $3.36 (+2% YOY) and $3.45 (+2% YOY) from $3.47 and $3.70, respectively. Our price target drops to $53 from $61, largely due to lower medium-term volume and profit trends."

For more ratings news on Kellogg click here and for the rating history of Kellogg click here.

Shares of Kellogg closed at $49.91 yesterday.

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