NEW YORK—A Barclays Capital analyst lowered the rating on the packaged food industry to "neutral" from "positive" on Nov. 26, citing the fact that consumers are choosing less-expensive grocery items.
The Associated Press reported that Analyst Andrew Lazar said there was "muddied visibility" for earnings acceleration in 2009, and less possible near-term catalysts to raise the stocks of Kellogg Co., Campbell Soup Co., and HJ Heinz Co. He told investors that recent revisions to per-share profit and recent share performance at those companies reflects some of the firm's thinking on the sector.
He added that while companies have raised prices to catch up with inflation, "the magnitude and timing of an earnings acceleration in 2009 (and beyond) is less clear to us at this point due to the dramatic changes that have occurred in the broader commodity markets—and to the consumer—over the last couple of months."