Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - CFRA raised its price target on Campbell Soup (NASDAQ:CPB) to $37.00 from $36.00 while maintaining a Hold rating on the stock. Currently trading at $33.07, InvestingPro analysis suggests the stock is trading below its Fair Value, despite eight analysts recently revising their earnings expectations downward.
The price target adjustment reflects CFRA’s application of a 15x multiple to its fiscal year 2026 earnings per share estimate of $2.47, compared to Campbell’s 16x long-term average forward price-to-earnings ratio.
CFRA reduced its FY26 EPS estimate from $2.99 previously, citing significant cost pressures including a 4% gross impact to cost of goods sold from Section 232 steel/aluminum and IEEPA tariffs, which primarily affect Rao’s imports from Italy.
Campbell Soup raised its long-term cost savings target for fiscal years 2025-2028 by 50% to $375 million, with $145 million expected to be realized in fiscal year 2025.
The stock rose approximately 7% following the company’s earnings announcement, which CFRA attributed to a better-than-feared earnings outlook supported by the increased cost savings target. Revenue growth remains solid at 6.4% over the last twelve months. For deeper insights into Campbell Soup’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Campbell Soup reported its fourth-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $0.62, which was higher than the anticipated $0.56. However, the company slightly missed its revenue forecast, posting $2.32 billion compared to the expected $2.33 billion. Analysts have responded to these results with adjustments to their price targets for Campbell Soup. TD Cowen raised its price target to $31 from $29, maintaining a Hold rating, while Bernstein SocGen increased its target to $39 from $38, with an Outperform rating. Piper Sandler reiterated its Neutral rating and a $34 price target, highlighting Campbell’s successful tariff mitigation strategies, which are expected to offset approximately 60% of its tariff headwinds in fiscal year 2026. These recent developments reflect a mixed but generally optimistic view from analysts regarding Campbell Soup’s financial performance and strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.