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On Tuesday, Bernstein SocGen Group analysts adjusted their outlook for Campbell Soup stock (NASDAQ: NYSE:CPB), reducing the price target to $44 from $47 while maintaining an Outperform rating. Currently trading at $33.79, near its 52-week low of $32.95, InvestingPro analysis suggests the stock is undervalued. The analysts noted that the company’s recent quarterly results surpassed management’s expectations, particularly in the soup segment.
The performance of Campbell Soup’s soup category showed a volume/mix growth of approximately 2%, excluding the forward pull of shipments. With overall revenue growth of 8.65% and a robust dividend yield of 4.55%, supported by 55 consecutive years of dividend payments, the company maintains strong fundamentals. This growth aligns with current trends of cooking from scratch and the dietary needs of GLP-1 patients. Analysts found this encouraging compared to the weaker performance observed across other U.S. food companies.
Despite the positive results in the soup segment, Campbell Soup’s snacking category sales remain weak. Analysts attributed this to consumer value-seeking behavior and the increasing use of GLP-1 drugs in the U.S. However, they noted that the overall volume/mix improvement at Campbell Soup is better than what many other companies are experiencing.
Looking ahead to fiscal year 2026, analysts identified potential challenges for Campbell Soup, including tariffs, incentive compensation, and increased marketing efforts. Nonetheless, they expressed optimism about the continued strength in the company’s meals and beverage segment.
In other recent news, Campbell Soup has reported its third-quarter earnings, surpassing expectations despite a 3% decline in earnings per share (EPS) to $0.73. This positive performance prompted TD Cowen to maintain a Hold rating on the stock, with a price target of $36, while UBS revised its price target downward to $33, maintaining a Sell rating. RBC Capital also adjusted its outlook, lowering the price target to $38 from $44, citing mixed results across Campbell’s divisions. The Meals & Beverages division showed resilience, whereas the Snacks division struggled with heightened competition and consumer spending shifts. Stifel echoed similar concerns, reducing their price target to $38 and highlighting the slow recovery in the Snacks division. Barclays (LON:BARC) analysts further reduced the price target to $35 due to anticipated challenges for fiscal year 2026, including potential tariff impacts and increased brand support spending. The company has adjusted its fiscal year 2025 EPS forecast to the lower end of its previous range, citing a 2% sales pull-forward affecting the fourth quarter. Analysts are closely watching Campbell Soup’s ability to address these challenges and improve its financial performance.
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