While Mead has noted a slower market for several quarters, it is clear that local and multinational infant formula producers are using more promotion to move excess inventory, Deutsche Bank noted.
"Along with Hong Kong disruption and changing retail landscape, we see these developments as disconcerting and lower our 2015 to 2016 China growth rates," Deutsche Bank analysts said.
The firm lowered sales estimates in 2015 to 0.7% growth from 1.5% growth, and reduced earnings per share to $3.82 from $3.89 this year, with $4.13 earnings per share down from $4.22 in 2016.
Mead Johnson Nutrition is a global pediatric nutrition company that manufactures, distributes and sells infant formulas, children's nutrition and other nutritional products.
Shares of Mead Johnson Nutrition are up 0.31% to $91.06 in afternoon trading Monday.
Separately, TheStreet Ratings team rates MEAD JOHNSON NUTRITION CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEAD JOHNSON NUTRITION CO (MJN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, growth in earnings per share, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."