UPDATE: Bernstein Downgrades Campbell Soup (CPB) to Market Perform

(updating comment)

Bernstein analyst Alexia Howard downgraded Campbell Soup (NYSE: CPB) from Outperform to Market Perform with a price target of $40.00 (from $49.00).

The analyst comments "Campbell attributed some of the deceleration to demand growth outpacing supply growth in soup where it has lost share to GIS. Campbell is also in the process of shifting to produce more bulk-sized Goldfish crackers instead of on-the-go pack sizes to accommodate consumer demand during the shelter-in-place period. We estimate that Campbell typically has a ~65% capacity utilization rate in the low season for soup. This has allowed the company to ramp up production and to meet at least a portion of the demand surge so far. However, should the level of demand continue to surge over the next few months, Campbell will have less wiggle room to increase soup production levels YoY as it starts to build inventory ahead of the soup season. That said, the company continues to rationalize its SKUs to maximize throughput and production levels."

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 $48.94 yesterday.

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy
• Birkenstock (BIRK) PT Raised to $55 at Bernstein SocGen Group