JPMorgan upgraded Campbell Soup to Overweight from Neutral with a price target of $52, up from $45, after meeting with management. This is the firm’s first Overweight rating on Campbell since 2009. The analyst believes consumer demand for Sovos’ products, mostly Rao’s, “remains excellent” and maybe better than expected. Second, JPMorgan sees the potential for modestly greater Sovos synergies down the road than initially planned. Campbell’s longer-term margin potential may be bigger than the Street expects thanks to its “self-help” efficiencies, the analyst tells investors in a research note.
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