BofA Securities cuts Campbell Soup stock price target to $33

Published 03/06/2025, 11:14
BofA Securities cuts Campbell Soup stock price target to $33

On Tuesday, BofA Securities analysts adjusted their outlook on Campbell Soup (NASDAQ: CPB) by lowering the stock’s price target to $33 from $37 while maintaining an Underperform rating. The adjustment follows the company’s third-quarter performance, which was influenced by shipment timing and SG&A factors.

The analysts highlighted several issues impacting Campbell Soup’s financial projections. They noted softer trends in the Snacks segment, which they expect will take longer to recover, extending into fiscal year 2026. Additionally, there is a shipment timing headwind anticipated for the Meals & Beverages division in the fourth quarter, estimated to be around three percentage points.

Tariffs are another factor affecting Campbell Soup’s outlook. The analysts estimate a $0.04 per share impact from tariffs in the fourth quarter. These tariffs include retaliatory measures from Canada, reciprocal tariffs involving Italy and Rao’s, and steel and aluminum tariffs, which are currently contemplated at a 25% rate.

In light of these challenges, BofA Securities revised its fiscal year 2025 adjusted earnings per share estimate for Campbell Soup to $2.91, down from $2.98. Looking ahead to fiscal year 2026, they also lowered the adjusted earnings per share estimate to $2.65 from $3.00, assuming similar tariff impacts through the first three quarters of the year. According to InvestingPro’s comprehensive analysis, the stock appears undervalued at current levels, with additional insights available in the detailed Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.

In other recent news, Campbell Soup Company (NYSE:CPB) reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.73, compared to the forecast of $0.65. The company also exceeded revenue predictions, reporting $2.48 billion against an anticipated $2.43 billion. Despite the positive earnings report, multiple analyst firms adjusted their price targets for Campbell Soup. Stifel lowered its price target to $38 from $40, maintaining a Hold rating, while Jefferies reduced its target to $34 from $37, also keeping a Hold rating. Citi went further, dropping its target to $32 from $33 and maintaining a Sell rating. The analysts cited challenges in the Snacks division, cost of goods sold inflation, and tariffs as ongoing concerns. Campbell Soup’s Meals and Beverages division showed strong performance, but the Snacks division struggled with a 5% decline in organic net sales. The company expects its EPS to be at the lower end of its range due to these challenges and is implementing strategies to mitigate tariff impacts estimated at $0.03 to $0.05 per share.

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