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UPDATE: UBS Starts Campbell Soup (CPB) at Sell

March 30, 2022 4:38 AM EDT
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Price: $48.60 -1.18%

Rating Summary:
    0 Buy, 15 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 13 | New: 58
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(Updated - March 30, 2022 4:46 AM EDT)

UBS analyst Cody Ross initiates coverage on Campbell Soup (NYSE: CPB) with a Sell rating and a price target of $42.00.

The analyst comments "We believe CPB’s share gains in Soup prior to COVID were the result of a large manufacturer filing for bankruptcy, causing a significant decline in Private Label capacity. The reduction in PL capacity was exacerbated during COVID as co-manufacturers prioritized branded products as they carry a higher margin. We expect demand for soup to wane as mobility increases, freeing up capacity for co-mans to make PL product again. If this plays out, our industry contacts believe there will be a 30-40% increase in private label capacity relative to 2019. We believe it will be tough for CPB to increase price enough to recover margin, without suffering meaningful share losses."

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 $44.73 yesterday.


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