Campbell Soup (CPB) PT Lowered to $30 at Wells Fargo

Wells Fargo analyst Chris Carey lowered the price target on Campbell Soup (NASDAQ: CPB) to $30.00 (from $31.00) while maintaining a Equal Weight rating.

The analyst comments "CPB stock was -5.2% vs XLP +0.2% today. While top-line came in better, some timing benefits reverse in FQ2. Meanwhile, margins underwhelmed. The combination makes it tough to embrace CPB into a 2H where some improvement is embedded. Snacks and margins. Our challenge with the CPB model right now is two-fold: 1) Snacks - organic sales in FQ1 was better than consumption, and consumption is deteriorating in a year when CPB expects Snacks to get better; 2) margins - CPB's FQ126 gross margin was its lowest ever (in our model back to FY2002), and it seems FQ226 will be yet lower, a surprising outcome vs our go-in model amid pricing which was climbing. The net here is sales and margin tension...and we lowered estimates."

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