Morgan Stanley Reiterates Underweight Rating, $30 PT for Campbell Soup
In a report published earlier today, Morgan Stanley reiterated its Underweight rating and $30.00 price target for Campbell Soup Company (NYSE: CPB).
Morgan Stanley went on to say “While CPB currently trades at 12.8x 2013e EPS, we do not believe its results have yet reached an inflection point and expect further underperformance to be driven by: (i) Outsized exposure to the structurally disadvantaged soup category; (ii) A lack of clarity on both the incrementality of its $100 million reinvestment program and the prospects for a near-term payback from planned F2013 innovation; and (iii) Limited near-term prospects to evolve its business mix away from slower-growth developed markets.”
Campbell Soup Company closed on Friday at $33.40.
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