Morgan Stanley released a "restrict" rating to trigger acquisition speculation, causing an increase in the stock price of Kimberly-Clark Corporation (KMB.US).

Consumer goods company Kimberly-Clark Corporation (KMB.US) saw its stock price rise by 2.13% on Thursday, after Morgan Stanley downgraded its rating to "restrict" previously. Morgan Stanley had downgraded its rating from "equal weight" to "restrict" on Tuesday. The specific reasons for the rating adjustment are not yet clear. Typically, investment banks will downgrade a rating to "restrict" when they are serving as a company's transaction advisor or when there may be potential conflicts of interest. Traders on Wednesday stated that Kimberly-Clark Corporation may become a potential acquisition target, or that Morgan Stanley has been hired to provide defense advisory services for aggressive investors - especially after the announcement of the $40 billion acquisition of Kenvue (KVUE.US). After the acquisition of Kenvue by Kimberly-Clark Corporation received a negative reaction on Wall Street, the company may become a potential target for aggressive investors. The transaction, announced on November 3rd, had caused a 15% plunge in Kimberly-Clark Corporation's stock price. Kimberly-Clark Corporation is scheduled to speak at the Morgan Stanley Global Consumer and Retail Conference next Wednesday. As of the time of writing, the stock had a slight increase of 0.71% in after-hours trading. Recently, senior market commentator Jim Cramer had commented that underperforming consumer goods companies in the packaging sector are presenting investment opportunities, specifically mentioning companies like Procter & Gamble Company (PG.US) and Kimberly-Clark Corporation as undervalued top-tier enterprises in the industry. Cramer suggested that inflation may be nearing a peak, which would help reduce costs for consumer goods giants. Additionally, the lenient attitude of the Trump administration towards antitrust enforcement makes it easier for companies to merge and dominate their industries. Cramer mentioned that Kimberly-Clark Corporation had just announced plans to acquire Kenvue, and praised the latter's brand strength - despite some unsubstantiated theories being promoted by Trump administration officials questioning the safety of its popular drug Tylenol.