UPDATE: Deutsche Bank Downgrades Kraft

In a note released before the market open on Thursday, Deutsche Bank analyst, Eric Katzman downgraded shares of Kraft Foods Group Inc KRFT from Buy to Hold and lowered the price target from $62 to $59. Katzman noted that, despite what he sees as limited downside, he is moving to the side lines due to challenging fundamentals. He added that, in his view, Kraft is pursuing the right long-term goals but developments in the U.S. industry, well as some internal missteps are placing prudent goals at risk. Based on these concerns, Katzman has lowered his fiscal 2014 EPS estimate from $3.28 to $3.21 and said the annual goal of 90 percent free cash flow efficiency seems difficult to achieve given "sluggish" sales, high inventory, and second half-weighted capital expenditures.