Even after slightly disappointing Q3 results, some analysts are still in the mood for a bowl of Campbell Soup Company (NYSE:CPB).

Campbell Soup in the News

This week, the 145 year old company revealed that third-quarter net income rose 2% while expenses declined and revenue rose slightly. However, revenue missed Street expectations, coming in at $1.97 billion and not the $2 billion the Street projected. But, Campbell Soup Company (NYSE:CPB) earned $184 million, or 58 cents per share during the three month quarter that ended on April 27, beating last year’s $181 million. After reviewing the numbers, CEO Denis Morrison made a statement saying that she wished the company’s performance could have been better, “Although I am encouraged by our 7% sales increase in U.S. Simple Meals, I am disappointed that our plans did not drive stronger sales results in U.S. Soup.”

What Does This Mean For Campbell Soup Stock?

Credit Suisse analyst Robert Moskow downgraded Campbell Soup to a SELL rating, but raised its price target from $41 to $42. The Credit Suisse team downgraded the stock on “expectations estimates for FY15 will need to come down due to difficult comparisons, increased company investments and stagnant industry trends.” Moskow has a +2.2% average return per recommendation, with a 52% success rate of recommendations.

Campbell Soup

On the other hand, analyst Jason English of Goldman Sachs maintained his HOLD rating with a price target of $43. English did call the company’s latest quarterly results “low quality” based on the disappointing numbers and the company’s downward outlook revision. However, English went on to say, “on the quarter, consolidated revenue fell short of expectations (0.4% vs. GS/consensus 0.7%/2%). However, we were encouraged to see its core US Simple Meals bolstered by 14% growth in broth and 25% growth in the Sauces portfolio (though another quarter of rising retail inventory appears to have helped the soup portfolio). Global Baking and Snacking was weaker (sales were -0.7% vs. GS 2.7%), which can be partially attributed to seasonality of Kelsen sales owing to China New year timing.”

While English still recommends holding on to the stock, he still foresees some challenges in the near future, “Management now expects to reach the lower end of FY14 EPS guide with lower incentive compensation and benefits of a 53rd week serving as enablers. These benefits should reverse next year and, if weather is less accommodating, may set the company up for a challenging FY15. Speculation of where guidance may come in at its July analyst day is likely to be a growing area of focus for investors.” English has a +12.2% average return on the stock, helping him earn an overall +2.8% average return per stock and a 75% success rate of recommendations.

Conclusion

Campbell Soup Company (NYSE:CPB)’s latest numbers were disappointing to both investors and management. However, management still thinks the company has a fighting chance, and some analysts are still willing to see where the company goes in the coming months.

Jordan Faigen covers financial markets and the latest stock market news. She can be reached at [email protected]