UBS Stays Neutral on Campbell Soup Following 1Q Results
November 23, 2009 5:50 PM
Investment bank UBS maintained its Neutral rating on shares of Campbell Soup (CPB) following the company’s announcement of 1Q 2010 results. The firm posted an earnings increase of $304 million in the quarter, or 87 cents per share, up from $260 million and 70 cents, respectively, in the same quarter last year.
However, CPB suffered a revenue decrease of 2.1 % in the quarter to $2.2 billion. Sales declines were recorded in most of its product segments.
UBS is particularly concerned that Campbell’s flagship segment, soups, experienced a 3% year on year sales decline. The bank was hopeful that recent strong marketing of the segment’s offerings, as well as a push in its value products, will lead to a boost in sales.
The bank’s Neutral rating on the stock was maintained at a price target of $34.
CPB shares closed up 1.4% to $34.60 in trading Monday.
