U.S. beverages, household personal care sectors set for tough start in H1- JPM

Honest

17/12/2021 11:19

** J.P.Morgan expects U.S. beverages and household and
personal care (HPC) sectors to continue facing supply-chain and
cost pressures in H1 2022, but improve in H2 due to pricing
benefits
    ** Freight costs and raw material prices have surged this
year across industries due to global supply chain disruptions,
squeezing profit margins at companies looking to recover from
the impact of the COVID-19 pandemic  urn:newsml:reuters.com:*:nL4N2R32WM
    ** For beverages, JPM prefers Coca-Cola  KO.N ,
Constellation Brands  STZ.N , Primo Water  PRMW.N  and Duckhorn
Portfolio  NAPA.N  as top picks on benefits from out-of-home
recovery; remains cautious on Molson Coors Beverage  TAP.N 
    ** JPM prefers Estee Lauder  EL.N  and Olaplex  OLPX.O  as
top picks for HPC, but remains cautious on Kimberly-Clark
 KMB.N  and Church & Dwight  CHD.N 
    ** "Most beauty and beverage stocks will continue to benefit
from more consumer mobility and pricing, while we think the
narrative for home care stocks will likely remain negative" -
JPM
   

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))