TD Cowen upgrades McCormick, Coca-Cola; WK Kellogg, J M Smucker fall after downgrade

WK Kellogg Co

08/01/2025 15:15

(Updates)
    ** TD Cowen updates ratings on packaged foods companies,
says it prefers household and personal care goods firms
        ** WK Kellogg  KLG.N  down 8.5% at $16.01 after
brokerage downgrades stock to "sell" from "hold" and lowers PT
by $2 to $16
  
        ** TD Cowen cites weak retail sales momentum heading
into 2025 and business disruption risks during supply chain
modernization 
  
        ** J M Smucker  SJM.N  down 2.4% at $104.75 after
brokerage downgrades to "hold" from "buy", cuts PT to $121 from
$130
  
        ** Cites loss of scale for already volatile pet business
and persisting challenges in co's Hostess business acquisition
  
    ** However, TD Cowen upgrades McCormick  MKC.N  and
Coca-Cola  KO.N  to "buy" from "hold"
    ** Sees signs of sequential volume growth for MKC, notes
strong flavorings category backdrop as consumers shop more in
fresh aisle; raises PT to $90 from $86
    ** Says KO is executing at "the top its game" in multiple
markets, sees co's franchise system as key enabler of strong
execution
    ** In 2024, shares of MKC, KO and KLG rose ~11, ~5% and 37%,
respectively, while SJM fell ~13%

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))