(News Bulletin 247) – Jefferies reaffirms its ‘hold’ recommendation on Campbell Soup with a price target lowered from 49 to 46 dollars, as the agri-food group approaches the publication of its fourth quarter results.

If the trend seems ‘impressive’ to him in snacks, where price increases are more than compensating for lower volumes, the broker sees more difficulties in meals and drinks, with prices which have slowed down and volumes in decline according to him by about 7%.

‘Food and drink volumes are now the risk as private labels continue to push into the soup, potentially leading to increased promotional activity requirements,’ he warns.

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