UPDATE: Morgan Stanley Reiterates Underweight Rating, Raises PT on Campbell Soup Company on Higher Sector Valuations

In a report published Tuesday, Morgan Stanley analyst Matthew Grainger reiterated an Underweight rating on Campbell Soup Company CPB, and raised the price target from $38.00 to $39.00. In the report, Morgan Stanley noted, “Despite modestly above-consensus 3Q EPS, the combination of reduced FY sales guidance (now -1% organic), declining promotional effectiveness, and mounting F15 EPS headwinds reaffirm our cautious outlook. We remain UW, while raising our PT modestly to $39 given higher sector valuations.” Campbell Soup Company closed on Monday at $44.06.