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On Tuesday, Citi analysts adjusted their outlook on Campbell Soup stock (NASDAQ:CPB), lowering the price target from $41.00 to $39.00 while maintaining a Sell rating on the shares. The $12.32 billion market cap company, which offers a 3.77% dividend yield and has maintained dividend payments for 55 consecutive years, will report its fiscal second quarter 2025 earnings on Wednesday, March 5. According to InvestingPro data, 16 analysts have recently revised their earnings expectations downward for the upcoming period.
The Citi analysts, led by Thomas Palmer, project that Campbell Soup’s organic sales growth for the quarter will fall short of the Visible Alpha consensus, despite the company’s recent revenue growth of 6.34%. However, they anticipate that the earnings per share (EPS) will align with expectations. The analysts foresee a potential guidance cut for both organic sales growth (OSG) and EPS, which could lead to downward revisions in estimates. For deeper insights into Campbell Soup’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional metrics in the Pro Research Report.
Despite the possibility of a guidance cut, the analysts suggest that any negative revisions might not shock the market. This is attributed to Campbell Soup’s ongoing sluggish sales trends and the fact that other food companies have recently revised their guidance, which could have set a precedent for Campbell Soup’s forthcoming announcement.
The Citi team’s analysis points to a cautious stance on Campbell Soup’s near-term performance, reflecting broader challenges within the food industry. As investors await the official earnings report, the revised price target signals a tempered expectation for the company’s stock performance in the short term.
In other recent news, Campbell Soup Company (NYSE:CPB) has seen several developments affecting its financial outlook and leadership. The company announced a leadership change with CEO Mark Clouse set to leave in January 2025 to join the NFL’s Washington Commanders, and Mick Beekhuizen will succeed him. This transition comes amidst revised financial expectations, with TD Cowen lowering its price target to $44 and reducing earnings per share (EPS) estimates for fiscal years 2025 and 2026. Piper Sandler also adjusted its full-year 2025 EPS estimate from $3.21 to $3.14, noting increased promotional spending but projecting modest earnings before interest and taxes (EBIT) growth.
Citi has further reduced its price target to $41, maintaining a Sell rating due to a challenging competitive landscape and a shortfall in first-quarter organic sales growth. Evercore ISI also lowered its price target to $48 while keeping an In Line rating, highlighting challenges in the broth and Snacks divisions. Despite these adjustments, Bernstein maintains an Outperform rating with a price target of $58, expressing confidence in the company’s continuity under new leadership. These recent developments indicate a period of transition and recalibration for Campbell Soup as it navigates industry and internal changes.
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