RBC Capital maintains a Sector Perform rating and $48 price target on Campbell Soup (NYSE: CPB) following CPB's 3Q results. Analyst David Palmer believes that, despite CPB's 3Q beat, a soup turnaround is needed to achieve long-term growth targets.

Palmer commented on CPB, saying, "We are maintaining our FY15E EPS following a fiscal 3Q beat. While gross margins improved during the quarter, we continue to believe that the key to sustained margin improvement and EPS growth lies in soup volume improvement (without significant increases in promotions). We will be looking to learn more about Campbell's gross margin strategy at its July investor day."

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Shares of Campbell Soup closed at $47.91 yesterday.