Nomad Foods downgraded to Neutral from Outperform at Credit Suisse

Credit Suisse analyst Robert Moskow downgraded Nomad Foods to Neutral from Outperform with a price target of $20, down from $25. European consumers have proven much more elastic to higher prices than U.S. consumers, Moskow tells investors in a research note. Nomad competes in frozen foods categories that lower-income consumers use as basic staples for inexpensive meal solutions, says the analyst. He believes these consumers are feeling more pressure from rising energy costs and the weaker macroeconomic backdrop in the region. As a result, consumers are more rapidly trading down to private label in response to Nomad’s price increases, Moskow contends.