Published On: Wed, Sep 14th, 2016

Investment Analysts’ Weekly Ratings Changes for Campbell Soup (CPB)

Campbell Soup (NYSE: CPB) recently received a number of ratings updates from brokerages and research firms:

9/12/2016 – Campbell Soup had its price target lowered by analysts at Credit Agricole SA from $64.00 to $59.00. They now have a “market perform” rating on the stock.
9/12/2016 – Campbell Soup was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “After a ten quarter long trend of either meeting or beating estimates, Campbell Soup succumbed to an earnings miss in fourth-quarter fiscal 2016. Moreover, the company’s margins and organic sales were hurt by soft Campbell Fresh performance that stemmed from low carrot sales and the voluntary recall of some Bolthouse Farms products. This, along with currency woes and higher promotional costs, dented Campbell’s results. On the flip side, the company remains pleased with the solid profits earned in fiscal 2016, fuelled by strong performance of its Americas Simple Meals and Global Biscuits segments, and cost saving efforts. Further, the company remains on track to improve Campbell Fresh’s long-term performance, and augment overall sales in fiscal 2017. This confidence in future prospects also encouraged management to declare a dividend hike, which along with its other shareholder-friendly moves, should boost investors’ sentiment”
9/5/2016 – Campbell Soup was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “After a decade-long trend of either meeting or beating estimates, Campbell Soup succumbed to an earnings miss in fourth-quarter fiscal 2016. Moreover, the company’s margins and organic sales were hurt by soft Campbell Fresh performance that stemmed from low carrot sales and the voluntary recall of some Bolthouse Farms products. This, along with currency woes and higher promotional costs, dented Campbell’s results. On the flip side, the company remains pleased with the solid profits earned in fiscal 2016, fuelled by strong performance of its Americas Simple Meals and Global Biscuits segments, and cost saving initiatives. Further, the company remains on track to improve Campbell Fresh’s long-term performance, and augment overall sales in fiscal 2017. This confidence in future prospects also encouraged management to declare a dividend hike, which along with its other shareholder-friendly moves, should boost investors’ sentiment.”
9/4/2016 – Campbell Soup was given a new $59.50 price target on by analysts at Wells Fargo & Co.. They now have a “hold” rating on the stock.
9/4/2016 – Campbell Soup had its “sector perform” rating reaffirmed by analysts at RBC Capital Markets. They now have a $58.00 price target on the stock, down previously from $62.00.
9/2/2016 – Campbell Soup had its price target lowered by analysts at Royal Bank Of Canada from $62.00 to $58.00. They now have a “sector perform” rating on the stock.
9/2/2016 – Campbell Soup had its price target lowered by analysts at Citigroup Inc. from $67.00 to $63.00. They now have a “neutral” rating on the stock.
9/2/2016 – Campbell Soup had its “neutral” rating reaffirmed by analysts at Bank of America Corp.. They wrote, “2Q SSS Deceleration Doesn’t Bode Well For Tougher Compares Ahead With LULU up nearly 45% YTD (vs XRT +2%), we expect shares to be down on 2Q SSS decelerating to 5% (from 8% in 1Q), which was slightly below our +5.5% expectations but well-below buy-side expectations. This deceleration comes ahead of more difficult SSS compares (3Q15 +9%; 4Q15 +11%) as LULU anniversaries LY’s pant wall re-launch (its biggest category at ~37% of sales). While LULU is confident in its product pipeline, traffic headwinds have continued into early 3Q from 1H and if women’s bottoms slow (from +DD to +M-HSD levels), this will put incremental pressure on women’s tops (~33% of sales) to perform (lapping 3Q15’s +27%) and overall SSS upside could be harder to achieve. Maintain our Neutral Rating and $72 PT. Inline 2Q EPS, but SSS Below Buy-Side Expectations LULU reported 2Q EPS of $0.38 (vs UBS $0.39, Street $0.38) with SSS ex FX +5% (vs UBS +5.5%, Street +5.8%), gross margin up 260 bps YOY (vs UBSe +130 bp; driven by MM +360 bps – largely from lower product costs), and 290 bps of SG&A deleverage (vs UBSe +140bp; driven by accelerated investments). SSS would have been +7% excluding lapping LY’s online warehouse sale.””
9/1/2016 – Campbell Soup was downgraded by analysts at TheStreet from a “buy” rating to a “hold” rating.
8/30/2016 – Campbell Soup was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “While Campbell’s strategies bode well, its recently trimmed sales growth target for fiscal 2016 has been a letdown. The company expects sales to fall between -2% and -1%, due to a recent product recall and the unfavorable shift of a major carrot consumer to a twin-source setup. Also, the company expects currency headwinds to linger and impact fiscal 2016 sales by nearly 2 points. However, Campbell is on track with its strategic initiatives aimed at strengthening its brand portfolio. It has drawn four strategies, focused on increasing transparency with consumers; diversifying portfolio; developing digital capacities and expanding in developing markets. The company’s idea of concentrating on supply chain efficiencies, along with cutting costs is likely to drive growth. Estimates have been stable ahead of the company’s fourth-quarter earnings release. It also has a positive record of earnings surprises in recent quarters.”
8/26/2016 – Campbell Soup had its price target lowered by analysts at Deutsche Bank AG from $63.00 to $61.00. They now have a “hold” rating on the stock.
8/24/2016 – Campbell Soup was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Campbell is on track with its strategic initiatives aimed at strengthening its brand portfolio. The company has drawn four strategies, focused on increasing transparency with consumers; diversifying portfolio; developing digital capacities and expanding in developing markets. The company’s idea of concentrating on supply chain efficiencies, along with cutting costs is also likely to drive growth. While Campbell’s strategies bode well, its recently trimmed sales growth target for fiscal 2016 has been a letdown. The company expects sales to fall between -2% and -1%, due to a recent product recall and the unfavorable shift of a major carrot consumer to a twin-source setup. Also, the company expects currency headwinds to linger and impact fiscal 2016 sales by nearly 2 points. Estimates have been stable ahead of the company’s fourth-quarter earnings release. It also has a positive record of earnings surprises in recent quarters.”
7/28/2016 – Campbell Soup had its “sell” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $60.00 price target on the stock.
7/26/2016 – Campbell Soup was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “While Campbell’s strategies bode well, its recently trimmed sales growth target for fiscal 2016 has been a letdown. The company expects sales to fall between -2% and -1%, due to a recent product recall and the unfavorable shift of a major carrot consumer to a twin-source setup. Also, the company expects currency headwinds to linger and impact fiscal 2016 sales by nearly 2 points. Estimates have been going down ahead of the company’s fourth-quarter earnings release. However, it has a positive record of earnings surprises in recent quarters. Campbell is on track with its strategic initiatives aimed at strengthening its brand portfolio. The company has drawn four strategies, focused on increasing transparency with consumers; diversifying portfolio; developing digital capacities and expanding in developing markets. The company’s idea of concentrating on supply chain efficiencies, along with cutting costs is also likely to drive growth.”

Shares of Campbell Soup Co. (NYSE:CPB) opened at 55.44 on Wednesday. The stock’s 50 day moving average price is $60.07 and its 200-day moving average price is $62.49. Campbell Soup Co. has a 52-week low of $47.77 and a 52-week high of $67.89. The firm has a market cap of $17.08 billion, a price-to-earnings ratio of 30.63 and a beta of 0.31.
Campbell Soup (NYSE:CPB) last posted its quarterly earnings results on Thursday, September 1st. The company reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.50 by $0.04. Campbell Soup had a return on equity of 59.50% and a net margin of 7.07%. The business had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.69 billion. During the same period last year, the firm posted $0.43 EPS. Campbell Soup’s quarterly revenue was down .4% on a year-over-year basis. On average, analysts forecast that Campbell Soup Co. will post $3.07 EPS for the current year.

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The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 31st. Investors of record on Wednesday, October 12th will be given a dividend of $0.35 per share. The ex-dividend date is Friday, October 7th. This represents a $1.40 dividend on an annualized basis and a yield of 2.53%. This is a positive change from Campbell Soup’s previous quarterly dividend of $0.31. Campbell Soup’s payout ratio is currently 69.44%.
In related news, insider Carlos Barroso sold 1,600 shares of the business’s stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $57.68, for a total transaction of $92,288.00. Following the sale, the insider now owns 46,888 shares in the company, valued at approximately $2,704,499.84. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP William J. O’shea sold 13,000 shares of the business’s stock in a transaction on Friday, September 2nd. The stock was sold at an average price of $57.74, for a total value of $750,620.00. Following the sale, the vice president now owns 28,952 shares in the company, valued at approximately $1,671,688.48. The disclosure for this sale can be found here. Corporate insiders own 37.70% of the company’s stock.
Campbell Soup Company manufactures and markets food products. The Company’s segments include U.S. Simple Meals; Global Baking and Snacking; International Simple Meals and Beverages; U.S. Beverages, and Bolthouse and Foodservice. Its U.S. Simple Meals segment includes various products, such as Campbell’s condensed and ready-to-serve soups; Prego pasta sauces, and Pace Mexican sauces.

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