Barclays on Campbell Soup (CPB): Was The Bolthouse Acquisition Used As A Cover Up?
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Price: $45.64 -0.26%
Rating Summary:
1 Buy, 7 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
1 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Barclays maintains an 'Equalweight' on Campbell Soup (NYSE: CPB) price target of $34.00.
Analyst, Andrew Lazar, listed a few positives on for the Bolthouse Farms acquisition including: 1) Moving up to the big leagues - the $12-13 billion 'packaged fresh' category that's growing 6-7%/year; 2) Provides additional bolstering behind CPB's existing beverages business, which is seeing continued pressure; 3) Access to greater chilled distribution and possibly extending soup/sauce platform; and 4) Additional EPS visibility.
However, Lazard has some concerns...he said, "with carrots representing ~50% of the business, investors may not be keen on CPB leveraging itself to the volatilities inherent in commodity-based businesses. And, we wonder whether some investors may view this as a way for the company to cover up for a struggling base-business, particularly looking out to FY13 as questions abound as to whether Campbell will require another step-up in reinvestment, potentially constraining EPS growth..."
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 $32.72 yesterday, with a 52 week range of $29.69-$35.02.
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Analyst, Andrew Lazar, listed a few positives on for the Bolthouse Farms acquisition including: 1) Moving up to the big leagues - the $12-13 billion 'packaged fresh' category that's growing 6-7%/year; 2) Provides additional bolstering behind CPB's existing beverages business, which is seeing continued pressure; 3) Access to greater chilled distribution and possibly extending soup/sauce platform; and 4) Additional EPS visibility.
However, Lazard has some concerns...he said, "with carrots representing ~50% of the business, investors may not be keen on CPB leveraging itself to the volatilities inherent in commodity-based businesses. And, we wonder whether some investors may view this as a way for the company to cover up for a struggling base-business, particularly looking out to FY13 as questions abound as to whether Campbell will require another step-up in reinvestment, potentially constraining EPS growth..."
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 $32.72 yesterday, with a 52 week range of $29.69-$35.02.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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