Goldman Sachs Reiterates Buy Rating, $40 PT on Campbell Soup Company on Higher Estimates

In a report published Monday, Goldman Sachs reiterated its Buy rating and $40.00 price target on Campbell Soup Company (NYSE: CPB).Goldman Sachs noted, “We recommend investors buy CPB ahead of what we believe could be a topline driven 2Q13 beat on the back of better-than-expected soup volumes and strength in its global baking business. Our sales and EPS estimates for the quarter are 3% and 5% above consensus, respectively. The stock continues to trade at a 20% P/E multiple discount to the overall Food group, despite posting US retail sales growth of 2.4% over the most recent quarter (compared to a flat average for most of our coverage). We favor CPB into the print on expectations of better results and recommend it longer-term on its potential to re-rate back to historical relative levels as fundamental improvement continues in its core business. We revise our EPS estimates by less than 1% as we update FX.”Campbell Soup Company closed on Friday at $37.93.