Jefferies lowers Campbell Soup stock price target amid snacks weakness

Published 02/06/2025, 20:28
Jefferies lowers Campbell Soup stock price target amid snacks weakness

On Monday, Jefferies analysts adjusted their outlook on Campbell Soup stock (NASDAQ: CPB), reducing the price target to $34 from $37 while maintaining a Hold rating. The stock currently trades at $34.21, near its 52-week low, though InvestingPro analysis suggests the stock may be slightly undervalued based on its Fair Value model. The adjustment follows Campbell Soup’s performance in its fiscal third quarter, where the company surpassed expectations partly due to a shipment timing benefit in its Meals & Beverages (M&B) segment and an improvement in Snacks margins.

Despite these positive elements, Campbell Soup’s management indicated a more cautious profit outlook for fiscal 2025, citing challenges in the Snacks segment as a key concern. The company also highlighted the potential impacts of tariffs beginning in the fourth quarter, which may necessitate increased marketing efforts.

Jefferies analysts noted that while the M&B segment showed relative consumption strength, this was more than offset by other challenges, leading to the revised price target. The analysts reiterated their Hold rating, reflecting a balanced view of the company’s current situation.

Campbell Soup’s management is closely monitoring these factors as they navigate the evolving market conditions. The company is considering strategic adjustments to address the anticipated challenges in the upcoming quarters.

In other recent news, Campbell Soup Company (NYSE:CPB) has reported its third-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.73 against the forecast of $0.65. The company’s revenue also surpassed projections, reaching $2.48 billion compared to the anticipated $2.43 billion. The Meals & Beverages segment showed strong performance with a 6% increase in organic net sales, while the Snacks division faced challenges with a 5% decline in organic net sales. Despite mixed results, Campbell Soup maintained its full-year guidance at the low end of the range. Analysts from firms such as Barclays (LON:BARC) and JPMorgan have highlighted the company’s strategic focus on brand investment and innovation to drive future growth. The company is also addressing tariff impacts, which are estimated to affect earnings by $0.03 to $0.05 per share. Campbell Soup continues to implement strategies to enhance efficiency and effectiveness across its operations, aiming for long-term growth.

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