Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Piper Sandler has reiterated its Neutral rating and $34.00 price target on Campbell Soup (NASDAQ:CPB) following analysis of the company’s tariff mitigation strategies. The stock, currently trading at $33.09, appears undervalued according to InvestingPro analysis, despite being down 31% year-to-date.
The research firm notes that Campbell Soup has identified ways to offset approximately 60% of its expected tariff headwinds in fiscal year 2026, which was not previously factored into calculations.
Campbell Soup has implemented targeted pricing increases in its Meals & Beverages segment to counter steel tariffs, though Piper Sandler expects competitive pressure as General Mills pushes soup prices lower.
The company still holds some tariff-free inventory that will sell through in fiscal 2026, and may be able to source raw materials more favorably for some products to help offset tariff costs.
Piper Sandler has raised its fiscal 2026 earnings per share estimate from $2.39 to $2.46 based on improved tariff mitigation prospects, while maintaining a fiscal 2027 EPS estimate of $2.71.
In other recent news, Campbell’s Co reported its fourth-quarter earnings for 2025, showing a notable performance in earnings per share (EPS). The company achieved an EPS of $0.62, surpassing the expected $0.56, which marks a 10.71% surprise. Despite this positive outcome, Campbell’s revenue slightly missed forecasts, coming in at $2.32 billion compared to the projected $2.33 billion. These developments highlight the company’s ability to exceed earnings expectations even when revenue falls short. The recent earnings report reflects investor optimism, as seen in pre-market reactions. Analysts had anticipated different results, which makes the actual performance noteworthy. This news is part of a series of recent developments concerning Campbell’s Co.
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