Goldman Sachs Maintains Rating on Campbells (CPB)

Goldman Sachs Maintains Rating on Campbells (CPB)

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Goldman Sachs reported on Monday that they are reaffirming their “Buy” rating on packaged food company, Campbell Soup Company(CPB).

The firm has reiterated its “Buy” rating and $40 price target on CPB. This price target suggests a 4.5% increase from the stock’s current price of $38.20.

An analyst from the firm commented, “we recommend investors buy CPB ahead of what we believe could be a topline driven 2Q13 beat on the back of better-than-expected soup volumes and strength in its global baking business. Our sales and EPS estimates for the quarter are 3% and 5% above consensus, respectively. The stock continues to trade at a 20% P/E multiple discount to the overall Food group, despite posting US retail sales growth of 2.4% over the most recent quarter (compared to a flat average for most of our coverage). We favor CPB into the print on expectations of better results and recommend it longer-term on its potential to re-rate back to historical relative levels as fundamental improvement continues in its core business. We revise our EPS estimates by less than 1% as we update FX.”

Campbell shares were up 24 cents, or 0.63% during Monday morning trading. The stock has increased 20% in the past year.

The Bottom Line
Shares of Campbell Soup Company(CPB) have a 3.06% yield, based on Friday’s closing price of $37.93.

Campbell Soup Company(CPB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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