Campbell Soup upgraded by Goldman analyst

[August 14, 2012]  NEW YORK (AP) -- A Goldman Sachs analyst upgraded her rating on Campbell Soup Co. to "Buy" from "Neutral," citing the company's push to turn around its ailing soup business and expectations that the packaged food industry overall will enjoy stronger growth next year.

THE OPINION: Analyst Judy Hong said in a note issued Sunday that the canned soup category has potential to grow. She noted that Campbell's marketing and innovation strategy has changed dramatically, with a compelling slate of new products and ads on tap for the coming months.

Hong also noted that the stocks of packaged food companies have lagged behind the stocks of beverage companies so far this year, in part because of concerns over rising grain prices. But she said those concerns have now been prices into the shares of food companies. She also expects revenue growth for food companies to accelerate slightly in 2013, while growth for beverage companies should remain steady.

THE STOCK: Shares of Campbell, based in Camden, N.J., were up $1.08, or 3 percent, at $34.39 in morning trading.

[Associated Press]

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