Kraft'S (NYSE:KFT) US Coffee Business Struggling Says Deutsche Bank (NYSE:DB)

Ongoing struggles in their coffee business will cause problems for Kraft Foods (NYSE:KFT) says Deutsche Bank (NYSE:DB), which maintains their "Hold" rating on them.

Deutsche said, "Despite a solid dividend yield, and LT potential portfolio improvement via Cadbury (snacks/confection, emerging markets), we retain our HOLD opinion. Kraft’s US coffee business is looking problematic to us. Meanwhile leverage, modest FCF, competitive developed markets and integration risk lead us to see valuation as reasonable."

Kraft was trading at $30.43, dropping $0.20, or 0.65 percent as of 2:36 PM EST. Deutsche lowered their price target on them from $31 to $30.