Campbell: Credit Suisse ups target but still sees risk
(CercleFinance.com) - Credit Suisse has raised its target price for the Campbell stock from 32 dollars to 36 dollars after the US soup maker said it would sell parts of its portfolio to focus on its core businesses in North America.
In a note to clients, the broker wrote that the group's management team has admitted to the company's mistakes over the past few years, including acquisitions of several businesses that lay outside of its core areas.
While Credit Suisse has raised its target price to take into account a "more logical path toward value creation and higher valuation multiples" in the sector, it prefers to maintain its "underperform" rating on the stock.
"Structurally declining consumption trends in core soup and V8 beverages, pressure from grocer retailers for more concessions, and execution risk during the Snyder's Lance integration make it difficult for us to embrace the new long-term guidance," it said in the report.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, the broker wrote that the group's management team has admitted to the company's mistakes over the past few years, including acquisitions of several businesses that lay outside of its core areas.
While Credit Suisse has raised its target price to take into account a "more logical path toward value creation and higher valuation multiples" in the sector, it prefers to maintain its "underperform" rating on the stock.
"Structurally declining consumption trends in core soup and V8 beverages, pressure from grocer retailers for more concessions, and execution risk during the Snyder's Lance integration make it difficult for us to embrace the new long-term guidance," it said in the report.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.