RBC Capital downgrades Hostess Brands (NASDAQ:TWNK) to Sector Perform from Outperform after factoring in the food company's weak Q2 earnings report.
Analyst David Palmer says it was Walmart that Hostess was referring to when it described a loss of promotional support during the quarter from a major retail customer. Plamer also points to higher freight, labor and packaging costs for Hostess moving ahead.
The new RBC price target on Hostess is $14.
Shares of Hostess Brands are down 16.21% in early trading.
Now read: Hostess Brands Offers Sweet 20% Upside »
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