How are energy investors positioned?
Investing.com - JPMorgan has assumed coverage on Campbell Soup (NASDAQ:CPB) with a Neutral rating and a price target of $33.00, down from the previous target of $34.00. According to InvestingPro analysis, the stock appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report.
The investment bank sees potential downside risk to Campbell’s fiscal year 2026 earnings per share outlook, which the company is expected to provide on September 3rd. Despite near-term challenges, Campbell maintains strong fundamentals with an EBITDA of $1.86 billion and has maintained dividend payments for 55 consecutive years.
JPMorgan noted this risk is likely "well-understood" by investors following disappointing FY26 EPS outlooks from several food companies with April and May fiscal year-ends, including Conagra Brands (NYSE:CAG), General Mills (NYSE:GIS), Lamb Weston, and J.M. Smucker.
Looking beyond the upcoming earnings report, JPMorgan projects minimal organic sales growth for Campbell over the next few years, forecasting just 0.2% growth in FY26 and 0.8% in FY27.
Despite the modest growth outlook, the firm sees opportunity for Campbell’s earnings to rebound in fiscal year 2027 through "self-help initiatives and continued debt paydown."
In other recent news, Campbell Soup has seen several adjustments in its stock price targets by different analyst firms. Bernstein SocGen lowered its price target for Campbell Soup to $38, citing challenges such as tariff-driven inflation and increased marketing investments, while maintaining an Outperform rating. Similarly, TD Cowen adjusted its target to $29, highlighting potential tariff-related headwinds expected to affect fiscal year 2026. Piper Sandler also revised its target to $35, mentioning significant tariff exposure, particularly concerning steel tariffs, that could impact earnings per share.
In addition to these financial assessments, Campbell Soup has made changes to its board of directors. Mary Alice Dorrance Malone, Jr. has been appointed as a new director and will serve on the Compensation and Organization Committee and the Finance and Corporate Development Committee. Malone, who is the founder of the luxury fashion brand Malone Souliers, brings nearly two decades of experience in the fashion industry. These developments reflect ongoing strategic and financial adjustments within Campbell Soup.
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