UBS Cuts Price Target on Campbell Soup (CPB) to $51; Reiterates Sell
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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."
Shares of Campbell Soup closed at $56.91 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
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