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On Monday, Evercore ISI analysts maintained their In Line rating on Campbell Soup (NYSE:CPB) stock, keeping the price target at $41. The decision comes amid mixed performance in the company’s fiscal third quarter, highlighted by strong broth sales but weaker performance in the salty snacks category. According to InvestingPro data, Campbell’s stock is currently trading near its 52-week low of $32.95, with a compelling 4.58% dividend yield. The company has maintained dividend payments for 55 consecutive years, demonstrating remarkable financial stability.
The analysts noted that Campbell Soup’s third-quarter organic sales growth of 1% surpassed both their and consensus estimates by approximately 2.5 percentage points. This was primarily attributed to shipment timing in the Meals & Beverages segment. However, the company faces challenges with cost pressures, including some related to tariffs, impacting gross margins and earnings per share.
In their analysis, Evercore ISI pointed out that the midpoint of Campbell Soup’s fiscal year 2025 organic sales guidance suggests a 1% decline in the fourth quarter. This anticipated decline is expected as snack sales weaken, counterbalancing continued share gains in the broth category.
Commodity inflation and tariffs have prompted Campbell Soup to revise its fiscal year 2025 earnings guidance downward to a range of $2.90 to $2.92 per share, a 4% reduction. This adjustment is slightly below the Evercore ISI estimate of $2.96 and the consensus estimate of $2.97.
Overall, Evercore ISI’s reaffirmation of the In Line rating reflects the mixed results and ongoing challenges faced by Campbell Soup in the current economic environment.
In other recent news, Campbell Soup is preparing for its third-quarter earnings report, with analysts forecasting a mixed outlook. UBS maintains a Sell rating with a $36 target, predicting earnings per share (EPS) slightly above consensus due to reduced marketing expenses. RBC Capital holds a Sector Perform rating with a $44 target, expressing skepticism about Campbell Soup’s financial outlook, particularly in its snacks segment. Evercore ISI has lowered its price target to $41, citing challenges in the Snacks division and revising its fiscal year 2026 sales growth expectation to flat. Piper Sandler also adjusted its price target to $42, maintaining an Overweight rating while highlighting potential earnings impacts from European Union tariffs. TD Cowen kept a Hold rating with a $36 target, noting concerns over tariff headwinds and adjusting their fiscal year 2026 EPS projection to $2.86. Analysts across these firms express cautious sentiments, reflecting broader challenges in the packaged food industry and Campbell Soup’s strategic responses to these hurdles. Investors are keenly awaiting the company’s earnings release for more insights into its financial health and future strategies.
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