Morgan Stanley Sees Continued Challenges for Campbell Soup Despite Strong 2Q Results

In a report published Tuesday, Morgan Stanley analyst Matthew Grainger reiterated an Underweight rating and $38.00 price target on

. In the report, Morgan Stanley noted, “Despite stronger than expected 2Q results, a 1% YTD org sales decline suggests unresolved structural challenges in CPB's core business. We remain UW, given risk to 2014 guidance (weak January, elevated inventories) and an insufficient valuation discount relative to US Food peers.” Campbell Soup closed on Friday at $43.01.