EU and US could reach trade deal this weekend - Reuters
On Tuesday, Barclays (LON:BARC) analysts reduced the price target for Campbell Soup stock (NASDAQ: CPB) to $35 from $40, maintaining an Underweight rating. Currently trading at $34.25, near its 52-week low, the stock has seen a 19.77% decline over the past year. The analysts cited several anticipated challenges for the upcoming fiscal year 2026, which have been highlighted by other food companies. According to InvestingPro data, Campbell Soup maintains a solid 4.55% dividend yield and has maintained dividend payments for 55 consecutive years.
The analysts mentioned that Campbell Soup’s management has flagged potential issues such as the reinstatement of incentive compensation, tariff impacts, persistent inflation, and increased brand support spending. These factors are expected to affect the company’s performance, similar to challenges faced by other companies like Conagra Brands (NYSE:CAG), General Mills (NYSE:GIS), and J.M. Smucker. Despite these challenges, the company has maintained revenue growth of 8.65% in the last twelve months.
Campbell Soup has indicated plans to increase its marketing and selling expenses to the higher end of its 9-10% of sales target. However, the company has also faced challenges in its snack segment, with trends deteriorating in the third quarter of fiscal year 2025 and Rao’s results falling below forecasts.
Regarding tariffs, Campbell Soup has not yet fully implemented strategic mitigation efforts, and recent reports suggest that tariffs on steel and aluminum could rise from 25% to 50% soon. Additionally, the company is expected to face a year-over-year headwind of 2-3 percentage points in operating profit due to incentive compensation adjustments.
Overall, Barclays analysts anticipate a year-over-year earnings per share decline of more than 5% for fiscal year 2026, factoring in various headwinds and underlying EPS growth. InvestingPro analysis suggests the stock is currently undervalued, with additional insights and a comprehensive Pro Research Report available for deeper analysis of Campbell Soup’s financial health and future prospects.
In other recent news, Campbell Soup Company (NYSE:CPB) reported its third-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.73, compared to the forecast of $0.65. The company’s revenue also exceeded predictions, reaching $2.48 billion against an anticipated $2.43 billion. Despite this strong performance, several analysts have adjusted their outlook on Campbell Soup. BofA Securities lowered its stock price target to $33, citing issues such as shipment timing and tariff impacts. Similarly, Stifel reduced its price target to $38, noting the slower recovery in the Snacks segment and potential tariff impacts on earnings. Citi also revised its target to $32, maintaining a Sell rating due to concerns over cost inflation and weak demand in the Snacks category. Jefferies adjusted its target to $34, reflecting challenges in the Snacks segment despite improvements in the Meals & Beverages division. These developments indicate ongoing challenges for Campbell Soup as it navigates market conditions and tariff impacts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.