Gabelli Continues to Recommend Campbell Soup

In a research report released earlier today, Gabelli reiterated its Buy rating on Campbell Soup (NYSE: CPB) as the company continues to strive for stronger top line growth.

Gabelli commented in the report, “Revenue growth and cost savings initiatives ($150-200 m) includes the benefits from manufacturing efficiencies, leveraging SAP, plus restructuring savings should drive profitability improvements and mid to high-single digit earnings growth beyond fiscal 2012, which includes assumptions for share repurchase but not acquisitions, which could further enhance its global scale and earnings but is also a significant risk. The valuation remains attractive as CPB is currently trading at 8.8x 2012E EBITDA and 13.6x earnings. We calculate a PMV of $51 per share based on fiscal 2013 estimates; however, it should be noted that members of the Dorrance family own over 40% of CPB shares and hold five board seats.”

Gabelli maintains its $51 PMV on Campbell Soup, which closed Friday at $32.90.