UBS Stays Neutral on Campbell Soup Following 1Q Results

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.