NOMD - Nomad down 7.5% after Credit Suisse downgrades rating to neutral

• Nomad Foods ( NYSE: NOMD ) is trading 7.5% lower after Credit Suisse downgrades to neutral to outperform, with a price target of $20, down from $25.
• European consumers have proven much more elastic to higher prices than U.S. consumers, Credit Suisse analyst Robert 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, the analyst said.
• 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
• Given the U.S. consumer's surprisingly resilient response to higher prices, U.S. food companies (up 12% in L12 weeks) have a better chance of beating estimates and delivering outsized earnings growth in 2023, he added.

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