Morgan Stanley Warns U.S. Food Sector Faces Intensified Competition and Pricing Pressures into 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Source: seekingalpha
- Increased Competitive Risks: Morgan Stanley analysts warn that the U.S. food sector will face heightened competitive risks as value-focused pricing, promotions, and private label momentum reaccelerate into 2026, potentially leading to downside pressures on market share and margin recovery.
- Rising Price Investments: Large retailers are actively reinvesting in pricing and promotional activities, compressing pricing headroom for manufacturers, indicating that any moderation in commodity inflation may not benefit margins but rather be reinvested back into the market.
- Rating Downgrades: Morgan Stanley downgraded Kraft Heinz (KHC) from Equal-weight to Underweight and J.M. Smucker (SJM) from Overweight to Equal-weight, reflecting a cautious outlook on the future performance of food manufacturers amid increasing competitive pressures.
- Target Price Adjustments: Analysts lowered target prices for several companies, including Conagra Brands (CAG) from $19 to $18, BellRing Brands (BRBR) from $41 to $32, and Campbell's Company (CPB) from $30 to $28, indicating a pessimistic outlook for the sector's future profitability.
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Analyst Views on BRBR
Wall Street analysts forecast BRBR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRBR is 39.17 USD with a low forecast of 27.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 24.780
Low
27.00
Averages
39.17
High
52.00
Current: 24.780
Low
27.00
Averages
39.17
High
52.00
About BRBR
BellRing Brands, Inc. is engaged in the global convenient nutrition category offering ready-to-drink shake and powder protein products. The Company's primary brands, Premier Protein and Dymatize, appeal to a range of consumers and are distributed across a diverse network of channels including club, food, drug, mass, e-commerce, specialty and convenience. Premier Protein is a mainstream lifestyle brand. Premier Protein’s product portfolio consists primarily of RTD protein shakes and protein powders. Premier Protein’s flagship RTD protein shakes are available in diverse flavors and contain 30 grams of protein and 160 calories. Premier Protein’s powder portfolio consists primarily of 100% whey protein products. Dymatize brand’s portfolio includes an assortment of sports nutrition products, including protein powders. Its protein powder portfolio consists of three primary products: ISO.100 made with hydrolyzed 100% Whey Protein Isolate, Elite 100% Whey and Super Mass Gainer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BellRing Brands Faces Securities Class Action Lawsuit
- Lawsuit Deadline: ClaimsFiler reminds investors that those who purchased BellRing securities between November 19, 2024, and August 4, 2025, must file lead plaintiff applications by March 23, 2026, to participate in the class action lawsuit, potentially affecting their claims.
- Stock Price Volatility: On May 6, 2025, BellRing's stock plummeted 19% from $78.43 to $63.55 after failing to disclose key retailer inventory reductions, indicating strong market reactions to the company's performance expectations.
- Sales Outlook Downgrade: On August 4, 2025, BellRing reported a disappointing sales outlook for fiscal year 2025, narrowing net sales expectations to between $2.28 billion and $2.32 billion, leading to a nearly 33% drop in stock price, reflecting significant market pressure.
- Legal Liability Risks: BellRing and its executives face legal liabilities for failing to disclose material information during the class period, which could have long-term negative implications for the company's reputation and future stock performance.
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BellRing Brands Faces Class Action Lawsuit Over Misleading Sales Claims
- Class Action Filed: A class action lawsuit has been initiated against BellRing Brands, Inc. following disappointing Q2 and Q3 2025 earnings reports, representing investors who acquired securities between November 19, 2024, and August 4, 2025, highlighting serious concerns over the company's financial transparency.
- Stock Price Plunge: Following the Q2 2025 earnings report on May 6, 2025, BellRing's stock price plummeted by 19%, and after the Q3 report on August 4, it fell another 33%, indicating strong market skepticism regarding the company's future sales outlook.
- Misleading Sales Growth: The lawsuit alleges that BellRing misrepresented the strength and sustainability of its sales growth, with actual increases largely attributed to temporary inventory stockpiling by customers, revealing the company's vulnerability amid intensifying competition.
- Ongoing Investigation: Hagens Berman is investigating whether BellRing misled investors about consumer demand strength, urging affected investors to submit claims, which could have significant implications for the company's future operations.
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