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Investing.com - UBS has lowered its price target on Campbell Soup (NASDAQ:CPB) to $30.00 from $33.00 while maintaining a Sell rating on the stock. According to InvestingPro analysis, Campbell Soup is currently trading at $32.65, significantly below its 52-week high of $49.72, with the stock showing a notable YTD decline of 32%.
The firm cited a challenging fundamental outlook for the company, expecting Campbell to deliver another quarter of underwhelming organic revenue performance. UBS also anticipates that the company’s initial fiscal year 2026 guidance will point to a difficult year ahead. Despite these challenges, InvestingPro data reveals the company’s impressive 55-year streak of consecutive dividend payments, with a current dividend yield of 4.8%. Get access to more exclusive insights and 12+ additional ProTips with an InvestingPro subscription.
Despite underperforming the consumer staples sector year-to-date, Campbell shares have performed well in recent weeks, outperforming the Consumer Staples Select Sector SPDR Fund (XLP) by nearly 500 basis points since the start of the third calendar quarter. Investors should note that Campbell’s next earnings report is scheduled for September 3, 2025, just 5 days away.
UBS maintained its quarterly earnings estimate of $0.57 per share, which aligns with broader market expectations. For fiscal year 2026, however, the firm reduced its earnings per share forecast to $2.48 from $2.78, reflecting greater cost impacts including tariffs, increased marketing expenses, and the return of incentive compensation.
The firm noted that while it expects continued fundamental pressure to drive further underperformance over the next 12 months, the risk/reward on the upcoming earnings report appears balanced, with significant share price declines unlikely unless guidance falls substantially below UBS’s below-consensus forecast.
In other recent news, Campbell Soup has been the focus of various analyst assessments and corporate developments. RBC Capital has maintained its Sector Perform rating with a price target of $35, expressing caution about the company’s near-term prospects due to negative trends in the snacking category. JPMorgan has assumed coverage with a Neutral rating, adjusting the price target to $33 from a previous $34, and highlighted potential downside risks to the company’s fiscal year 2026 earnings per share outlook. Bernstein SocGen has also lowered its price target to $38 from $44 while maintaining an Outperform rating, citing challenges such as tariff-driven inflation and increased marketing reinvestment.
Additionally, Campbell Soup has made changes to its board of directors. Mary Alice Dorrance Malone, Jr. has been appointed as a director, with her term lasting until the 2025 annual meeting of shareholders. Ms. Malone, Jr., the founder of luxury fashion brand Malone Souliers, brings significant experience in general management and brand building. She will also serve on the Compensation and Organization Committee and the Finance and Corporate Development Committee. These developments reflect ongoing strategic and financial assessments within the company.
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