UBS initiated coverage of Campbell’s (CPB) with a Sell rating and $36 price target implying 5% downside from current levels. The firm thinks top line growth will remain “elusive” over the next 12-18 months, as category growth remains under pressure and share losses continuing, resulting in downside to Street forecasts, the analyst tells investors in a research note. UBS believes delivering meaningful EPS growth will be difficult for Campbell’s amid the challenging and dynamic cost environment as well as the potential need for reinvestment to drive top line growth.
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