UPDATE: 2Q11 Earnings Preview for Campbell Soup Company (CPB)

BOA Merrill Lynch has released a 2Q11 earnings preview for Campbell Soup Company

. Shares are up by a dismal 1.6% since 1Q results were reported in November. Merrill Lynch analysts attribute this performance to three possible factors: a weak economy, broader secular shifts, or issues specific to Campbell. The forecast includes a 0.3% decrease in consolidated sales growth as well as 30bp and 50bps decreases in growth margin and operating margins, respectively. Anticipated EPS growth of 2-4% reflects an expectation for more constructive category pricing. The report states that CPB risks include a weak soup category, trade down to private label, competition, high commodity inflation, and high advertising spending. Merrill Lynch analysts maintain a Neutral rating for CPB with a price target of $36. It is trading at $34.44.