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J.M. Smucker downgraded on slowing pet food sales

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Credit Suisse lowered its rating for J.M. Smucker, maker of Kibbles 'n Bits dog food and Milk-Bone treats, to neutral from outperform, saying the company will miss earnings expectations due to poor pet food sales.

"We underestimated the hit to sales from difficult comparisons to last year's extensive new product launches and we fear that we underestimated the level of reinvestment it will take to revitalize the struggling pet food division," analyst Robert Moskow wrote in a note to clients Tuesday.

"In addition, we feel less comfortable recommending this stock at a time when the company's key commodity inputs have bottomed and no longer provide material opportunities for margin benefits."