Wells Fargo downgrades Conagra, Campbell’s and General Mills on profit risks

Wells Fargo has downgraded Conagra, Campbell's, and General Mills due to concerns about potential profit risks in the food sector. These downgrades reflect broader concerns regarding rising input costs and changing consumer preferences that could pressure margins. Analysts suggest that these companies may struggle to maintain profitability amid inflation and economic uncertainties. The negative assessment highlights a shift in sentiment towards food stocks, which had previously seen sustained demand during the pandemic. Investors may need to reassess their positions in these stocks given the downgrade and the potential for lower earnings forecasts.