Campbell Soup stock price target maintained at $35 by RBC Capital

Investing.com - RBC Capital has reiterated its Sector Perform rating and $35.00 price target on Campbell Soup (NASDAQ:CPB) ahead of the company’s fourth-quarter earnings report, due in 5 days. The stock, currently trading at $32.65, has experienced a challenging year with a -32% YTD return. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.

The firm expressed caution about Campbell Soup’s near-term prospects, noting that data points for packaged food, particularly in the snacking category, continue to show negative trends. Despite these challenges, Campbell maintains strong fundamentals with a 30.6% gross profit margin and has demonstrated remarkable dividend consistency, maintaining payments for 55 consecutive years with a current yield of 4.8%.

RBC Capital highlighted that management had previously identified additional impact from tariffs that was not included in earlier guidance, which will likely put further pressure on the company’s bottom line this quarter.

Looking forward to fiscal year 2026, RBC Capital believes the external environment will remain challenging for Campbell Soup, citing both consumer demand issues and cost headwinds as ongoing concerns.

While consensus estimates for Campbell Soup have been revised downward to what RBC Capital considers more appropriate levels, the firm indicated that these estimates may not have reached their lowest point yet.

In other recent news, Campbell Soup has been the focus of several analyst updates and company announcements. Bernstein SocGen Group lowered its price target for Campbell Soup to $38.00 from $44.00, maintaining an Outperform rating while adjusting its earnings per share estimate for fiscal year 2026 from $3.09 to $2.77. TD Cowen also reduced its price target to $29.00 from $33.00, citing potential tariff-related challenges in fiscal year 2026 and maintaining a Hold rating. Similarly, JPMorgan has assumed coverage with a Neutral rating and a price target of $33.00, down from a previous target of $34.00, noting potential downside risks to Campbell’s future earnings outlook.

In corporate governance news, Campbell’s has appointed Mary Alice Dorrance Malone, Jr. to its Board of Directors. Malone, Jr., who is the founder of the luxury fashion brand Malone Souliers, brings extensive experience in management and brand building. She will serve on the Compensation and Organization Committee and the Finance and Corporate Development Committee. These developments come as Campbell Soup navigates various economic headwinds and strategic adjustments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.