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Campbell's stock falls after J.P. Morgan downgrades, dashes hopes of a merger

The replaces a prior merchandise that incorrectly stated which news outlook reported about Kraft Heinz's talks to shop for Campbell. It has been corrected.

Shares of Campbell Soup Co. slid 1.2% in midday industry Friday, after J.P. Morgan analyst Ken Goldman turned bearish at the convenience foods company, at the trust that optimism surrounding a possible buyout could also be unwarranted. The stock had rallied 2.five% to a near 4-month top on Aug. three, after The New York Post reported that Kraft Heinz Co. KHC, -0.58% opened exploratory talks about acquiring Campbell. On Thursday, the stock rose 0.7% after activist investor Dan Loeb's Third Point LLC hedge fund disclosed a big stake and urged a sale of the corporate. On Friday, Goldman reduce his score to underweight, after being at impartial since January 2016. "Although we agree with Third Point that [Campbell's] best option is to sell, we see a sale as an unlikely outcome," Goldman wrote in a notice to purchasers. He stated if he's improper and a sale takes place, he questions how much of a top class a suitor is willing to pay. "If a sale does not happen, we see meaningful downside to the stock price given shaky fundamentals and a levered balance sheet," he wrote. The stock has misplaced 13% yr up to now, whilst the SPDR Consumer Staples Select Sector ETF CPB, -2.20% has declined 6.2% and the S&P 500 SPX, -0.71% has won 6.2%.

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