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Investing.com - TD Cowen has reduced its price target on Campbell Soup (NASDAQ:CPB) to $29.00 from $33.00 while maintaining a Hold rating on the stock. The stock, currently trading at $30.51, has declined 36.2% year-to-date and offers a 5.11% dividend yield. According to InvestingPro analysis, Campbell Soup appears undervalued at current levels.
The firm cited potential tariff-related headwinds as the primary reason for the downward revision, particularly impacts expected to materialize in fiscal year 2026.
TD Cowen lowered its FY26 earnings per share estimate to $2.40, which represents an 18% year-over-year decline and falls below the current consensus estimate of $2.77.
The firm noted that while Campbell Soup faces a $0.03-$0.05 tariff headwind estimated for the fourth quarter of fiscal 2025, these costs are expected to increase significantly in fiscal 2026 as temporary offsetting measures fade and new mitigation strategies lag behind cost realization.
TD Cowen also warned that estimates for the absolute size of tariffs affecting Campbell Soup could increase further depending on the outcome of trade negotiations with the European Union and Canada.
In other recent news, Campbell Soup has been the focus of several analyst assessments following its recent earnings reports and strategic developments. Piper Sandler lowered its price target for Campbell Soup to $35, citing fiscal 2026 headwinds such as tariffs and challenges in the Snacks segment, while maintaining an Overweight rating. Argus downgraded the stock to Hold due to persistent volume challenges and changing consumer behavior, although they noted the positive potential of Campbell’s Sovos acquisition. TD Cowen also reduced its price target to $33, highlighting concerns about the company’s pricing power amid inflation and weak snack demand, while maintaining a Hold rating.
DA Davidson adjusted its target to $34, pointing to pressures in the snacks portfolio and rising costs, while maintaining a Neutral rating. Bernstein SocGen lowered its price target to $44 but maintained an Outperform rating, noting strong performance in the soup segment and better-than-expected quarterly results. Analysts collectively emphasized the ongoing challenges Campbell Soup faces, particularly in its snacks division, and the impact of tariffs and rising costs on future financial performance. Despite these challenges, some analysts expressed optimism about the company’s meals and beverages segment. These developments reflect a mixed but cautious outlook among analysts for Campbell Soup’s near-term prospects.
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