Morgan Stanley Reiterates Overweight on Campbell Soup

Morgan Stanley is out with its report today on Campbell Soup

, reiterating Underweight. In a note to clients, Morgan Stanley writes, "We reiterate our Underweight rating on Campbell following F3Q11 results. While results exceeded expectations, it was due to lower SG&A and better Baking and Snacking results, which managed to offset poor soup results. With continued sequential soup disappointments, escalating COGS inflation, increasing competitive pressure in beverages and sauces, in our view, the need to take decisive action to identify and remedy soup category malaise continues to increase." Morgan Stanley maintains $31 PT on CPB. At the time of posting, shares of CPB were trading pre-market at $35.13, up 0.52% from Monday's close.