Krispy Kreme Stock Downgraded By JPMorgan
Analysts at JPMorgan Chase (JPM) have downgraded shares of doughnut chain Krispy Kreme (DNUT) to“neutral” from“overweight” and maintained a $13 U.S. price target on the stock.
Analysts at the bank say the downgrade comes after a subpar third-quarter earnings release from Krispy Kreme and near-term headwinds facing the company.
JPMorgan analysts add that Krispy Kreme has struggled to execute on its business plan and that it has faced consistency problems.
The bank notes that Krispy Kreme packages don't always contain products made within the last 24 hours, as the company claims.
On a positive note, JPMorgan said that Krispy Kreme remains a beloved brand and retains a loyal consumer following.
Krispy Kreme's stock has been pushed lower in recent months over concerns about the new class of weight loss medications, which some analysts say will hurt snack and beverage sales going forward.
The stock of Krispy Kreme has declined 17% over the past 12 months and currently trades at $13.04 U.S. per share
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