Analysts at JPMorgan and Piper Jaffray affirmed their ratings on Campbell Soup at neutral, but investors sent the stock higher, following a quarter of mixed results from the canned food producer.
Piper Jaffray also affirmed its $45 price target while JP Morgan hasn't set a target on the shares.
Campbell shares were trading higher Wednesday afternoon, up 1.8% to $48.42.
The company reported per-share earnings of 78 cents, beating the analyst consensus from FactSet of 71 cents. Revenue was $2.18 billion, in line with the estimate of $2.19 billion.
Perhaps more significant was the company’s lowered fiscal 2020 net-sales guidance, due to the completed sale of its European chips business. The company pared its sales guidance to a range of a decline of 1% to an increase of 1% from its previous view of a gain of 1% to 3%.
“At first glance, we are of two minds on this print," JP Morgan's note said.
"On the one hand, the quality of the quarter was so-so vs. Street expectations and the stock is trading at a premium [price-to-earnings multiple].
"On the other hand, the quarter was impaired by the timing of Thanksgiving-related shipments (management suggested that 2% of sales in meals/beverages were moved into the second quarter).”
Meanwhile, Piper Jaffray's Michael Lavery expects the company to achieve 1% to 2% annual growth in earnings per share following the divestiture of its European chips business.