Gabelli Maintains Buy on Campbell Soup

Gabelli is out with its report today on Campbell Soup

, maintaining Buy. In a note to clients, Gabelli writes, "As we look toward the company's July analyst meeting, we expect management to walk through its plans to revitalize soup, including additional new product introductions, marketing campaigns and changes in promotional strategy to address market conditions. Longer-term we expect more rational promotional pricing in soup as commodity costs continue to rise. Revenue growth and cost savings initiatives should lead to profitability improvements going forward against this year's easier comparisons. The valuation remains attractive and we are maintaining a Buy. CPB is currently trading at 8.8x 2012P (ending July) EBITDA and 13.2x earnings. We calculate a PMV of $51 per share based on fiscal 2012 estimates." At the time of posting, shares of CPB were trading at $34.96, up 0.03% from Monday's close.