Campbell Soup stock target cut to $47 by Bernstein

On Thursday, Bernstein analysts adjusted the price target for Campbell Soup (NASDAQ:CPB) shares, reducing it to $47.00 from the previous $48.00, while still maintaining an Outperform rating on the stock. According to InvestingPro data, analyst targets for Campbell range from $36 to $61.33, with 15 analysts recently revising earnings estimates downward. The revision follows the recent announcement by former President Trump regarding new tariffs on imports to the United States.

The tariffs, which were revealed on Wednesday afternoon, start at a general rate of 10% for all imports, with certain countries facing higher rates. These increased rates are determined by the administration’s assessment of various factors, including the tariffs those countries impose on American exports, currency manipulation, and trade barriers. Despite market uncertainties, Campbell maintains strong fundamentals with a 4% dividend yield and a 55-year track record of consistent dividend payments.

Campbell Soup could face challenges due to this development, especially concerning the import of steel and aluminum from Canada, which currently attracts a 25% tariff. This is particularly significant for the company as raw materials for packaging, which include steel and aluminum, make up approximately 17% of the company’s cost of goods sold (COGS), with around 3% exposure each to steel and aluminum.

The management of Campbell Soup, during their earnings call last month, indicated that the persistent tariffs could eventually compel the company to take pricing actions. This statement was made amidst an environment of ongoing tariff volatility, which continues to impact businesses and trade relations.

In other recent news, Campbell Soup has been the focus of several analyst reports following its latest financial disclosures. The company reported mixed results for the second quarter of fiscal year 2025, surpassing earnings expectations but falling short on revenue, leading to a lowered guidance for the full year. DA Davidson maintained a Neutral rating on Campbell Soup with a price target of $39, citing ongoing challenges in the Snacks segment and a complex market environment. Similarly, Morgan Stanley (NYSE:MS) initiated coverage with an Equalweight rating and a $40 price target, noting the company’s strategic moves and challenges in its snacking categories.

TD Cowen took a more cautious approach, cutting its price target to $36 from $44, reflecting concerns over the company’s revised guidance and competitive pressures in the Snacks division. The firm highlighted potential risks from tariffs and the impact of GLP-1 proliferation on Campbell’s market position. Analysts from DA Davidson also pointed out that while there are some positive trends, the broader food industry landscape remains difficult to navigate. These developments underscore the varied outlooks among analysts as Campbell Soup faces both opportunities and headwinds in its business operations.

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