UBS Cuts Price Target on Campbell Soup (CPB) to $51; Reiterates Sell

September 2, 2016 8:37 AM EDT
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Price: $53.31 +0.23%

Rating Summary:
    0 Buy, 8 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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UBS maintained a Sell rating on Campbell Soup (NYSE: CPB), and cut the price target to $51.00 (from $52.00), following the company's 4Q earnings report.

Analyst Steven Strycula commented, "Campbell's stock sell-off is more a reaction to lower FY17 EPS guide ($3.00-$3.09 vs Street $3.14) than weak F4Q C-Fresh profits. CPB's FY17 EPS growth (+2-5% YOY) appears reasonable given cost savings, lower tax rate, buyback plan—but flat to 1% sales guide screens less conservative (vs FY16 -0.5%). On its F4Q call CPB guided soup sales (35% of mix) to grow modestly in FY17, implying an acceleration from CPB's -3.8% in FY16 vs category -2.5%. Our $3.05 FY17 EPS is based on: flat Simple Meals revenue (55% of mix), +1.5% EBIT growth (18.5% margins), and $250m in buybacks."

For an analyst ratings summary and ratings history on Campbell Soup click here. For more ratings news on Campbell Soup click here.

Shares of Campbell Soup closed at $56.91 yesterday.

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