Analyst Increases Price Target Of Campbell Soup

NEW YORK (AP) — A Morgan Stanley analyst boosted Campbell Soup Co.'s price target Monday after the company's adjusted fourth-quarter profit topped analysts' expectations.

On Friday the world's largest soup maker reported adjusted earnings of 30 cents per share. The results surpassed the 26 cents per share estimate of analysts surveyed by Thomson Reuters. Analysts' estimates generally exclude one-time items.

Vincent Andrews lifted the Camden, N.J.-based company's price target to $33 from $30.50 and maintained an "Equal Weight" rating, questioning if Campbell's plan to roll out some lighter, healthier soups next year will be able to take a bite out of Progresso and private label market share and volume gains without increasing its promotional spending.

"Campbell's has posted volume declines in its U.S. soup, sauces and beverage segment as well as on a companywide basis for the last three quarters so 2010 innovation is undoubtedly important," the analyst wrote in a client note.

Shares of Campbell Soup dropped 28 cents to $32.85 in morning trading.