Campbell Soup Co. (NYSE: CPB) shares made a solid gain in Monday’s session after it was reported that Kraft Heinz Co. (NASDAQ: KHC) may be looking to gobble up the soup maker.
A report from the New York Post surfaced over the weekend claiming that Kraft was interested in acquiring Campbell. According to the New York Post, Kraft believes that Campbell’s management will start a sales process, given that CEO Denise Morrison retired back in May and the company is currently being run by an interim CEO.
Exploring a sale for Campbell would make sense at this point, especially because it would offer the opportunity to bring in new management.
Not to mention, Campbell’s stock has been in free fall for the past year. This was a $60 stock as recently as February 2017, and it hit lows not seen in over five years in the past two weeks.
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Currently analysts have a consensus price target on Campbell of $35.43, a discount of over 8% from the most recent closing price of $38.60. Almost any deal that Campbell might get out of Kraft may just be worth it to the shareholders to get this stock off their hands.
The 50-day and 200-day moving averages are holding at $38.00 and $43.67 respectively, which could offer some indication of what Kraft might be targeting.
Shares of Campbell Soup were last seen up about 9% at $42.16, with a 52-week trading range of $32.63 to $54.37.
Kraft shares recently traded at $63.33. The consensus analyst price target is $67.59, and the 52-week range of $54.11 to $90.38.
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