- MorganStanley Analyst Pamela Kaufmann repeated an equal weight assessment on the shares of Campbell Soup Co CPB with a target price of $48.00.
- The analyst listed the key takeaways from a meeting with the company’s management.
- Kaufman noted that management is bullish on the FY23 outlook as the company has benefited from below historical resilience and is well positioned to benefit from consumers increasingly seeking value and innovation efforts.
- She added that CPB believes its category exposure puts it in an advantageous position when consumers are under economic pressure.
- also read: Campbell Soup Makes Top Line Beat In Q4; Notes margin pressure
- The analyst believes that resilient consumer demand for packaged foods supports Campbell’s near-term outlook, while moderate inflation coupled with price realization should help improve margins.
- Meanwhile, the analyst is cautious about CPB’s long-term growth prospects, the sustainability of demand for key categories, and its ability to achieve snack food margin improvement.
- In the fourth quarter of FY22, the company saw weaker shipments at snack foods as it implemented a price hike in June. Given the stabilization in July, management expects the first quarter to outpace consumption by a few hundred basis points as the company continues to build inventories.
- Price promotion: CPB shares are trading up 2.78% at $49.10 on the last check Wednesday.
- Photo via company
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