01:16 PM EDT, 09/13/2024 (MT Newswires) -- Campbell Soup's ( CPB ) acquisition of Sovos Brand could help stimulate its growth, but the company faces heightened competition and industry uncertainties, RBC Capital Markets said in a note Friday.

"We are encouraged by CPB's successful acquisition of Sovos, which could help pull the company out of its current lull and reinvigorate growth," RBC said.

RBC raised its long-term organic growth outlook to 1.5% from 1% previously after the company issued a slightly higher growth outlook taking into account its acquisition of Sovos. It also adjusted its fiscal 2025 estimates for Campbell's earnings per share to $3.16 from $3.15, and for sales growth to 9.7% from 9.1%.

"We agree that CPB is improving its standings within packaged food and give credit where due but remain cognizant of heightened competition and lack of visibility affecting the broader packaged goods industry," the report said.

RBC raised its price target to $51 from $47 while keeping its sector perform rating on the stock.

Price: 50.90, Change: +1.12, Percent Change: +2.25