Campbell’s downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Campbell’s (CPB) to Neutral from Overweight with a price target of $37, down from $48. The firm says Rao’s sales and synergies have become better appreciated in the shares, Rao’s growth has decelerated, and the Snacks margin story “has been delayed perhaps indefinitely.” As such, JPMorgan sees fewer reasons for optimism, and views the stock as trading close to fair value. It also views the Street’s estimate for next year’s earnings as optimistic. The analyst cites the current reality of the snacking industry, some uncertainties surrounding the broader macro environment, and the stock’s lower multiple for the downgrade.