JOLTS Job Openings (Jun) 7.44M vs 7.5M Expected
On Monday, DA Davidson revised its price target for Campbell Soup shares (NASDAQ: CPB), reducing it to $39 from the previous $46, while keeping a neutral stance on the stock. Currently trading at $41.81, the company faces heightened scrutiny, with InvestingPro data showing 14 analysts revising their earnings expectations downward for the upcoming period. The firm’s analyst, Brian Holland, provided insight into the decision, citing a challenging environment for the food industry and specific hurdles facing the company.
Holland noted that the updated outlook for Campbell Soup includes an expectation for some improvement in trends, despite the current lack of positive signals. He pointed out that while the company’s Meals & Beverages segment has seen some benefits from the acquisition of Rao’s and potential stabilization in the soup business, the Snacks division continues to face difficulties.
The analyst also mentioned management’s acknowledgment of a delay in achieving its operating margin target of 17.0%. This acknowledgment comes amid a shifting landscape in the food sector, which Holland described as increasingly difficult to navigate.
In his analysis, Holland expressed a cautious view of the food group at large, suggesting that various factors, including tariffs that are not currently accounted for, contribute to an uncertain outlook. The neutral rating indicates that DA Davidson advises investors to remain on the sidelines with respect to Campbell Soup stock for the time being.
Campbell Soup shares have been impacted by these observations, with the price target adjustment reflecting the firm’s tempered expectations for the company’s financial performance in the near term. According to InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though it maintains a GOOD overall financial health score. For deeper insights into Campbell Soup’s valuation and more exclusive ProTips, investors can access the comprehensive Pro Research Report, available with an InvestingPro subscription.
In other recent news, Campbell Soup Company (NYSE:CPB) reported mixed results for its second-quarter fiscal year 2025 performance, surpassing earnings expectations but falling short on revenue. The company also lowered its full-year guidance, citing challenges in its Snacks division, which did not meet Wall Street’s expectations. Analysts at DA Davidson maintained a Neutral rating with a $46 price target, noting the earnings beat was due to reduced expenses. Meanwhile, TD Cowen cut its price target to $36, maintaining a Hold rating, and highlighted the competitive environment and potential tariff impacts as significant obstacles for the company. RBC Capital Markets also adjusted its price target to $44, maintaining a Sector Perform rating, while Evercore ISI reduced its target to $46, noting contrasting trends in product segments. Citi took a more bearish stance, reducing the price target to $37 and maintaining a Sell rating, expressing concerns over declining demand in the Snacks category and the company’s future growth projections. These developments reflect the broader challenges Campbell Soup faces in navigating a tough market environment. Analysts are closely monitoring the company’s performance, particularly in the Snacks and broth categories, for signs of improvement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.