TPI Composites files for Chapter 11 bankruptcy, plans delisting from Nasdaq
Investing.com - Piper Sandler reduced its price target on Campbell Soup (NASDAQ:CPB) to $35.00 from $41.00 on Tuesday, while maintaining an Overweight rating on the stock. The new target comes as Campbell trades near its 52-week low of $30.26, with the stock down over 28% in the past six months. According to InvestingPro analysis, the stock appears undervalued at current levels.
The research firm cited several fiscal 2026 headwinds in its analysis, primarily focusing on tariffs that could reduce earnings per share by $0.30-0.35 or potentially more. Piper Sandler noted that Campbell faces significant tariff exposure in fiscal 2026 as the company depletes its pre-tariff inventory, especially for steel (tin plate), which now carries a 50% tariff. Despite these challenges, Campbell maintains strong fundamentals with $10.22 billion in revenue and $1.86 billion in EBITDA over the last twelve months.
Campbell Soup also faces challenging comparisons heading into fiscal 2026, including fiscal 2025’s 53rd week, lower fiscal 2025 incentive compensation, and reduced advertising and selling costs in the current fiscal year. The firm maintained that Campbell’s Meals & Beverages segment should continue its momentum into fiscal 2026.
The research firm highlighted ongoing top-line challenges for Campbell’s Snacks segment, suggesting that improving real consumer wages would be needed to return the segment to growth as consumers remain price sensitive. Piper Sandler estimated the total incremental fiscal 2026 EPS headwind to be approximately $0.42 or more.
Piper Sandler maintained its fiscal 2025 EPS estimate of $2.93 for Campbell Soup but lowered its fiscal 2026 EPS forecast from $2.95 to $2.53, resulting in the reduced price target. Despite the lowered outlook, Campbell continues its 55-year streak of dividend payments, currently offering a substantial 5.14% yield. For deeper insights into Campbell’s valuation and growth prospects, including 8 additional ProTips, check out the comprehensive analysis available on InvestingPro.
In other recent news, Campbell Soup has been experiencing a series of developments impacting its financial outlook. Argus downgraded Campbell Soup’s stock from Buy to Hold, citing persistent volume challenges despite price increases. The firm noted that Campbell’s sales volumes have been stagnant or declining in recent quarters, with changing consumer behavior and rising input costs affecting margins. Meanwhile, TD Cowen lowered its price target for the company to $33, maintaining a Hold rating due to concerns about the lack of pricing power and weak demand in the snacks business. DA Davidson also reduced its price target to $34, expressing concerns over the snacks portfolio and rising costs, while maintaining a Neutral rating.
Bernstein SocGen adjusted Campbell Soup’s price target to $44, maintaining an Outperform rating, and noted the company’s soup segment exceeded expectations with a volume/mix growth of approximately 2%. However, snacking category sales remain a concern due to consumer value-seeking behavior and the impact of GLP-1 drugs. Additionally, TD Cowen reiterated its Hold rating after Campbell’s third-quarter earnings per share surpassed expectations, though the full-year 2025 EPS forecast was adjusted to the lower end of the previous range. Analysts across the board have expressed concerns about potential challenges, including tariffs and increased marketing efforts, impacting Campbell Soup’s future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.