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Investing.com - Bernstein SocGen Group lowered its price target on Campbell Soup (NASDAQ:CPB) to $38.00 from $44.00 on Thursday, while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the stock appears undervalued at its current price of $32.25, with the company set to report earnings on September 3rd.
The firm reduced its earnings per share estimate for Campbell’s fiscal year 2026 from $3.09 to $2.77, citing multiple headwinds including tariff-driven inflation and an expected 50 basis point increase in marketing reinvestment.
Additional factors impacting the revised outlook include the absence of a 53rd week in the fiscal calendar and a 2-cent headwind from increased incentive compensation, according to Bernstein SocGen.
The firm noted that management will likely provide conservative guidance for fiscal year 2026 when reporting results later this month or in early September, given challenges facing the U.S. food sector including sluggish snack trends and Amazon’s expansion in fresh food delivery.
Despite current weak sales trends in the soup category, Bernstein SocGen remains positive on Campbell’s positioning, noting that soup is among the most-preferred food choices for GLP-1 patients based on their survey, with approximately a quarter of the company’s sales in U.S. measured channels coming from canned soup.
In other recent news, Campbell’s Company has elected Mary Alice Dorrance Malone Jr. to its board of directors. Malone, who is the founder and Chief Brand Director of the luxury fashion brand Malone Souliers, will serve on the board until the 2025 annual meeting of shareholders. She has also been appointed to the Compensation and Organization Committee and the Finance and Corporate Development Committee. Meanwhile, Campbell Soup has faced several analyst adjustments. TD Cowen has lowered its price target for Campbell Soup to $29, citing concerns about potential tariff-related headwinds in fiscal year 2026. Piper Sandler also reduced its price target to $35, highlighting the impact of tariffs on steel, which could significantly affect earnings per share. Argus has downgraded Campbell Soup from Buy to Hold, pointing to ongoing volume challenges despite price increase strategies. These developments reflect various strategic and market challenges facing Campbell’s in the near future.
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