Shares of consumer goods company Kimberly-Clark (KMB.US) rose 2.13% on Thursday after Morgan Stanley adjusted its rating to "Restricted." The bank downgraded the stock from "Equal Weight" to "Restricted" on Tuesday, though the specific reasons remain unclear. Typically, investment banks issue "Restricted" ratings when acting as transaction advisors or facing potential conflicts of interest.

Traders speculated on Wednesday that Kimberly-Clark could be a potential acquisition target or that Morgan Stanley was hired to provide defense advisory services against activist investors—especially following the announcement of its planned $40 billion acquisition of Kenvue (KVUE.US). After the deal received a lukewarm response on Wall Street, Kimberly-Clark may have become a target for activist investors. The stock plunged 15% on November 3 when the acquisition was announced.

Kimberly-Clark is scheduled to present at Morgan Stanley’s Global Consumer & Retail Conference next Wednesday. At the time of writing, shares edged up 0.71% in after-hours trading.

Recently, veteran market commentator Jim Cramer noted that underperforming consumer staples stocks, including Procter & Gamble (PG.US) and Kimberly-Clark, present investment opportunities, calling them undervalued industry leaders. He suggested inflation may have peaked, easing cost pressures for consumer giants. Additionally, the Trump administration’s relaxed antitrust stance could facilitate mergers, allowing companies to strengthen market dominance.

Cramer highlighted Kimberly-Clark’s acquisition of Kenvue, praising the latter’s brand strength—despite unverified claims by Trump administration officials questioning the safety of its flagship product, Tylenol.