At Extreme Investor Network, we are always on the lookout for unique and lucrative investment opportunities. Today, we want to shed light on an exciting development in the food industry that could benefit investors – the potential impact of GLP-1 drugs on companies like Campbell Soup.
GLP-1 drugs, such as Novo Nordisk’s Ozempic, Eli Lilly’s Mounjaro, and Wegovy, are gaining popularity for their ability to dampen appetite in patients with diabetes and obesity. Interestingly, many patients who take these drugs are turning to protein-rich foods like soup as a go-to meal option. This shift in eating habits has caught the attention of analysts at Bernstein, who recently upgraded Campbell Soup’s rating to outperform and raised its price target.
According to analyst Alexia Howard, Campbell Soup’s soup volumes are showing signs of recovery, thanks in part to GLP-1 patients favoring soup as a convenient and nutritious meal option. In addition, indulgent products like Pepperidge Farm’s Milano cookies could also see a boost in sales as GLP-1 users look for “luxurious options for a smaller, less frequent treat.”
While Wall Street may not be overly bullish on Campbell Soup, with only five out of 20 analysts giving it a strong buy or buy rating, there is potential for significant upside in the stock. With an average price target of $51.37, implying more than 8% upside, investors should consider the growth opportunities presented by the increasing usage of GLP-1 drugs.
In contrast, the outlook for another food company, Hershey, may not be as rosy. Howard predicts that reduced chocolate consumption due to GLP-1 drug intake could negatively impact Hershey’s volume trajectory. As a result, Bernstein downgraded Hershey to market perform from outperform and lowered its price target.
Overall, the intersection of healthcare and food trends presents intriguing investment opportunities for savvy investors. Keep an eye on companies like Campbell Soup and Hershey as they navigate the changing consumer landscape influenced by the rise of GLP-1 drugs. Stay informed and stay ahead with Extreme Investor Network.