Cocoa Price Drop Earns Chocolatiers a Bullish Barclays Call
- Broker upgrades both Lindt and Barry Callebaut to overweight
- Analysts expect cocoa prices to keep falling on better harvest
The confectionery industry worldwide has come under immense pressure in the past year amid surging prices for cocoa.
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Barclays Plc analysts have turned positive on two of Switzerland’s leading chocolatiers, predicting the industry will benefit from a further slide in elevated cocoa prices.
In separate notes, Barclays upgraded both Barry Callebaut AG and Lindt & Spruengli AG to overweight, switching to what it described as “a more constructive view on chocolate players.” Shares of both companies rose in Zurich, the former gaining as much as 8%.