Campbell Soup's Direct Store Delivery Evolution Likely Gives Snacks Margins A Lift, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Piper Sandler analyst Michael Lavery has maintained a Neutral rating on Campbell Soup Company (CPB) but increased the price target from $44 to $47. The upgrade is based on CPB's evolution in direct store delivery (DSD) for its Snacks division, which includes consolidating mixing centers and depots, updating technology for inventory monitoring and ordering, and improving automation. The Goldfish brand's strong position among teens and new product innovations are expected to help expand its market share. The anticipated FTC approval and closure of the SOVO acquisition by the end of FY24 also contribute to the positive outlook. CPB's shares rose by 1.23% to $43.77.
December 07, 2023 | 8:20 pm
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POSITIVE IMPACT
Campbell Soup's stock may see a positive short-term impact due to Piper Sandler's raised price target, improvements in DSD, strong positioning of the Goldfish brand, and the anticipated SOVO acquisition.
The analyst's raised price target reflects confidence in CPB's operational improvements and market positioning, which could lead to increased investor interest and a potential rise in stock price. The positive mention of the Goldfish brand and the expected SOVO acquisition also support a bullish outlook for CPB in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100