Kellogg can't get millennials to buy enough cereal, analyst says

A shopper takes a box of Kellogg's Special K cereal off a supermarket shelf in New York.
Edouard H.R. Gluck | Bloomberg | Getty Images

Credit Suisse lowered its rating for Kellogg shares to neutral from outperform, citing the cereal maker's poor sales trends and unsuccessful outreach to younger consumers.

"We are downgrading Kellogg stock, ... the company's revenue growth rate continued to under-punch its peers due to ongoing pressure in the breakfast cereal category," analyst Robert Moskow wrote in a note to clients Wednesday.

"The company took several positive steps to re-engage Millennial consumers with more granolas, mueslis, and 'fashion-forward' ingredients. But from what we can tell, these efforts have not fully stabilized the business."