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On Monday, Citi analysts adjusted their outlook on Campbell Soup stock, revising the price target to $32 from $33 while maintaining a Sell rating. The decision follows a recent earnings report where Campbell Soup posted a $0.07 earnings per share beat but delivered cautious commentary regarding the fourth quarter of 2025. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $32.95, with data suggesting the company may be undervalued at current levels.
Citi analysts highlighted several challenges facing Campbell Soup, including cost of goods sold inflation, tariffs, and weak demand in the Snacks category. These factors were discussed in a recent call with Campbell Soup management, who also outlined potential mitigating strategies such as sourcing changes, pricing adjustments, innovation, marketing, and cost-saving measures. Despite these challenges, the company maintains a strong dividend track record, having paid dividends for 55 consecutive years, with a current yield of 4.58%.
Despite these strategies, Citi analysts expressed concerns about Campbell Soup’s earnings growth prospects for the fiscal year 2026. The analysts noted that unless tariffs are rolled back, some of which are not being challenged, the company may struggle to achieve earnings growth. Recent financial data from InvestingPro shows revenue growth of 9.15% in the last twelve months, though the company’s overall Financial Health Score remains "FAIR." Unlock 12+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Campbell Soup shares were flat at the time of writing, mirroring the performance of the S&P 500 index, which was also flat. The company’s stock continues to face pressure from the outlined economic and market challenges.
The analysts’ updated price target and insights into the company’s strategic challenges provide a cautious outlook for Campbell Soup’s future performance in the face of ongoing headwinds.
In other recent news, Campbell Soup Company (NYSE:CPB) reported its third-quarter 2025 earnings, exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $0.73, surpassing the forecast of $0.65, and reported revenue of $2.48 billion, above the anticipated $2.43 billion. Despite this strong performance, Jefferies analysts lowered the stock’s price target from $37 to $34, maintaining a Hold rating due to concerns in the Snacks segment. The Meals & Beverages division showed a 6% increase in organic net sales, but the Snacks division experienced a 5% decline. Campbell Soup’s management remains cautious about fiscal 2025 profit outlook, citing challenges in the Snacks segment and potential tariff impacts. The company plans to address these issues with strategic adjustments and increased marketing efforts. Campbell Soup maintained its full-year guidance at the low end of the range, with expectations for the Snacks segment to recover in fiscal 2026.
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