- Campbell Soup (CPB +1.5%) recoups a bit of yesterday's 8% plunge that followed disappointing FQ1 earnings and a warning that harvest delays of its carrot crop in California due to bad weather likely would hurt results in the current quarter.
- CPB said it expects delays to pick up in December and that transport disruptions have led to higher supply chain costs.
- UBS analysts trim their CPB price target by $1 to $41, not seeing a probable near-term path for the company to achieve its 5%-7% EPS growth goal due to volume challenges, pricing pressure and reinvestment needs.
- RBC cuts its target to $53 from $55, as it continues to expect sequentially higher sales and gross profit in H2 but soup inventory reductions at Wal-Mart (NYSE:WMT), unexpected carrot yield issues and lingering logistics costs likely will prove too difficult to fully offset.
- J.P. Morgan's Ken Goldman, who rates shares at Neutral, asks if CPB will retain its promotions with a key customer and “if so, to what degree could it help fiscal 2018?” Not much, according to Goldman.
- Now read: Another Campbell's Soup Disaster Has Us Questioning The Dividend
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