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TD Cowen lowered its price target on Campbell Soup (NASDAQ:CPB) stock to $33.00 from $36.00 on Wednesday, while maintaining its Hold rating on the shares. The stock, currently trading near its 52-week low of $32.12, appears undervalued according to InvestingPro analysis.
The firm cited concerns about Campbell’s lack of pricing power to offset inflation in the near term and persistently weak demand for the company’s snacks business as key factors behind the decision. Despite these challenges, the company maintains an 8.65% revenue growth and a solid 30.6% gross profit margin.
TD Cowen acknowledged positive aspects of Campbell’s business, including recent changes to the organizational structure, the resonance of its 16 power brands, and what it called a "thoughtful approach to pricing."
The research firm reduced its fiscal year 2026 earnings per share estimate to $2.75, below the consensus estimate of $2.85, reflecting its more cautious outlook on the food company’s future performance.
Campbell Soup, known for its iconic soup products and snack brands including Goldfish crackers and Pepperidge Farm cookies, has been working to navigate challenging market conditions as consumer spending patterns shift and input costs remain elevated.
In other recent news, Campbell Soup’s third-quarter earnings exceeded expectations, according to announcements from the company. However, the company adjusted its full-year 2025 earnings per share (EPS) forecast to the lower end of its previous range, citing a 2% sales pull-forward impacting the fourth quarter. RBC Capital highlighted mixed results, with strength in the Meals & Beverages division but ongoing challenges in the Snacks division. UBS, maintaining a Sell rating, reduced its price target to $33, expressing concerns about fiscal year 2026 due to marketing and tariff uncertainties. Similarly, DA Davidson lowered its price target to $34, noting pressure from the snacks portfolio and rising costs. Bernstein SocGen maintained an Outperform rating but adjusted the price target to $44, acknowledging strong performance in the soup segment despite weaknesses in snacks. TD Cowen reiterated a Hold rating with a price target of $36, citing potential EPS headwinds from tariffs and challenges in the Snacks business. These developments reflect ongoing challenges and adjustments in Campbell Soup’s strategic and financial outlook.
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