Piper Sandler analyst Michael Lavery reiterated a Neutral rating on the shares of Campbell Soup Company CPB and raised the price target from $44 to $47.
In Snacks, CPB has consolidated mixing centers and depots for its two direct store delivery (DSD) networks (Pepperidge Farm and Snyder's-Lance), writes the analyst.
CPB is also updating technology to improve computer-assisted inventory monitoring and ordering, improving automation, notes the analyst.
CPB's Goldfish brand maintained its position as the top preferred snack among teens, which could be a leading indicator of future market share gains, says the analyst.
According to the analyst, innovation in the Goldfish brand, like Goldfish Crisps launching in three flavors, could broaden consumption with more adult appeal, widening its consumer base and targeting different age cohorts.
CPB needs Federal Trade Commission’s clearance for the SOVO deal, which according to the analyst, is likely to be approved and the SOVO acquisition is expected to close at the end of FY24.
CPB looks on track toward its F24 guidance targets, and the price target raise reflects its momentum.
Price Action: CPB shares are trading higher by 1.23% at $43.77 on the last check Thursday.
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