UPDATE: Morgan Stanley Reiterates Underweight Rating, Lowers PT on Campbell Soup Company as Chilled Soup is Back on the Menu

In a report published Wednesday, Morgan Stanley analyst Matthew Grainger reiterated an Underweight rating on

, but lowered the price target from $41.00 to $38.00. In the report, Morgan Stanley noted, “While there were some ‘temporary' elements to CPB's Q1 shortfall (e.g., Plum recall), the magnitude and breadth of weakness was surprising. In particular, CPB's core trends appeared to decelerate, and several key retailers appeared to have managed down inventories further into Thanksgiving, adding to an existing timing shift. Ultimately, the majority of CPB's ~20% adjusted EBIT decline strikes us as ‘underlying' (or at the very least a consequence of flattered prior-year results), amplifying our existing concerns around its ability to generate profitable ongoing growth.” Campbell Soup Company closed on Tuesday at $39.20.