Bank of America Merrill Lynch Updates FY11 EPS Estimate on Campbell Soup

Bank of America Merrill Lynch is out with its report today on Campbell Soup

, updating its FY11 EPS estimate. In a note to clients, Bank of America Merrill Lynch writes," We raise our FY11 EPS estimate from $2.40 to $2.47. Our FY11 estimates are predicated on sales growth of +0.3% (incl. +1.6% benefit from favorable swing in FX), gross margin contraction of 80bps and EBIT decline of -4.6% (with operating margins down -80bps). The implied 4Q EPS is $0.34. We expect growth (both sales and EPS) to be concentrated in 4Q11 due to easier comparisons and plans to ship new products for FY12. Our F12/F13 EPS estimates of $2.54/$2.65 are unchanged. We maintain our Neutral rating and $35 price objective. Our PO implies 14.1x our CY11 EPS of $2.49, a 13.8% discount to the group." At the time of posting, shares of CPB were trading pre-market at $35.25, up 0.86% from Monday's close.