Gabelli Maintains a 'Buy' on Campbell Soup (CPB); A Bolt-On Acquisition

Gabelli maintains a 'Buy' on Campbell Soup (NYSE: CPB) price target of $50.00.

Analyst, Sarah Donnelly, said, "Campbell continues to strive for stronger top-line growth as it stabilizes US soup, reinvests to expand its product portfolio, introduces new products, improves its marketing/merchandising mix and focuses on geographic expansion and adjacencies. Bolthouse is complementary to Campbell’s V8 beverage portfolio, which generates over $960 million globally in annual revenue, while it also presents opportunities for CPB to leverage its vegetable expertise and scale. We would expect further bolt-on acquisitions as it looks to enhance its presence in the refrigerated and fresh foods section of the grocer. Our initial earnings estimates increase to approximately $2.60 per share for FY2013. CPB’s valuation remains attractive, as shares are currently trading at 8.7x revised 2013PF EBITDA and 12.5x P/E."

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.

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