** Shares of packaged food company Campbell's Co CPB.O fall 2% to $31.51

** Brokerage JP Morgan cut PT to $34 from $37; maintains "neutral" rating

** CPB shares could outperform peers over the next year if the snacking category improves; however, right now don't see sufficient evidence that this is taking place - JPM

** Don't see a lot of downside to the stock given the valuation, but upside may be constrained, too, till growth in snacks improves - brokerage

** CPB has fallen 23.2% YTD, as of last close

(Reporting by Juby Babu in Mexico City)

((Juby.Babu@thomsonreuters.com;))