Campbell: Credit Suisse has doubts about Kraft Heinz story

(CercleFinance.com) - Credit Suisse maintains its "underperform" rating on Campbell after the New York Post published an article speculating about Kraft Heinz's interest in the company.


In a research note, the broker says it remains bearish on the stock because it believes the Campbell board will choose to keep the the world's largest soup maker independent following a strategic review and because the company has lost pricing power in soup.

Credit Suisse doubts that the Dorrance family, which owns 37% of Campbell stock, would sell the company when the stock is down 44% from its high.

"The board may consider splitting up snacks and soup at some point, but probably not this year since it would entail loading up the soup business with a huge debt load and significant dis-synergies," it adds.

That said, the broker raises its target price to 32 dollars to reflect higher valuation multiples in consumer staples.

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