Goldman Sachs Upgrades Campbell Soup from “Sell” all the way to “Conviction Buy” (CPB)

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Packaged foods maker Campbell Soup Company ( CPB ) on Monday received a huge upgrade from analysts at Goldman Sachs.

The firm boosted its rating on CPB from "Sell" all the way up to "Conviction Buy." Goldman also raised its price target from $32 to $39, suggesting a 17% upside to the stock's Friday closing price of $33.31.

The move follows the firm's two-year Sell recommendation. Goldman notes that now the risk-reward for CPB looks good for several reasons:

  • Possibility for a renaissance in canned soup growth,
  • A renewed marketing and innovation strategy, and
  • More balanced tactical merchandising efforts.

Campbell Soup shares rose 59 cents, or +1.8%, in premarket trading Monday.

The Bottom Line
Shares of Campbell Soup ( CPB ) have a 3.48% dividend yield, based on Friday's closing stock price of $33.31. The stock has technical support in the $30-$31 price area. If the shares can firm up we see overhead resistance around the $35-$37 price levels.

Campbell Soup Company ( CPB ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CPB

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