NEW YORK (TheStreet) -- Shares of Campbell Soup (CPB) - Get Report are climbing, higher by 3.67% to $44.62 in early market trading, on reports that Brazilian investment firm 3G Capital Partners is discussing the possibility of acquiring the company, the Wall Street Journal reports.
3G owns a 51% stake in Restaurant Brands International (QSR) - Get Report , which is the roll-out company of Burger King Worldwide (BKW) and Tim Hortons (THI) . The company received about $5 billion in pledges from investors for a new takeover fund, the Journal added.
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Separately, TheStreet Ratings team rates CAMPBELL SOUP CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAMPBELL SOUP CO (CPB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CPB's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 4.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CAMPBELL SOUP CO has improved earnings per share by 29.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CAMPBELL SOUP CO increased its bottom line by earning $2.32 versus $2.16 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $2.32).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Food Products industry average. The net income increased by 36.0% when compared to the same quarter one year prior, rising from $172.00 million to $234.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, CAMPBELL SOUP CO's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 394.73% to $188.00 million when compared to the same quarter last year. In addition, CAMPBELL SOUP CO has also vastly surpassed the industry average cash flow growth rate of 32.23%.
- You can view the full analysis from the report here: CPB Ratings Report