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On Thursday, RBC Capital Markets maintained its Sector Perform rating on Campbell Soup (NYSE:CPB) Company (NASDAQ:CPB) with a steady price target of $44.00. The firm’s analysts voiced concerns ahead of the company’s third-quarter fiscal earnings, pointing to a challenging environment for packaged foods, especially in the snacks segment. Currently trading at $33.91, near its 52-week low of $32.95, InvestingPro analysis indicates the stock is undervalued, despite a challenging six-month period that saw a 25.44% decline.
Analysts at RBC Capital indicated skepticism towards Campbell Soup’s financial second half, citing that the anticipated improvement in organic growth, which is expected to turn positive by the fourth quarter, is not currently supported by their channel checks and scanner data. The firm’s stance reflects a broader caution in the market, as the packaged food industry has shown generally soft earnings, with snacking categories notably underperforming. Despite these challenges, InvestingPro data shows the company has maintained dividend payments for 55 consecutive years, currently offering a 4.62% yield, and achieved 9.15% revenue growth over the last twelve months.
Despite a previous reduction in guidance, RBC Capital’s analysts remain wary about Campbell Soup’s fiscal year 2025 top-line outlook. They suggest that the company’s expectations may be overly optimistic, given the lack of supporting evidence from current market data.
The analysts also noted that investor sentiment towards Campbell Soup is already low, due in part to the overall difficulties faced by the category. They expressed the view that a potential earnings miss in the upcoming quarter, scheduled for June 2, is likely already anticipated by the market, but they also warned that such an outcome could still negatively impact the company’s stock. For deeper insights into Campbell Soup’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
RBC Capital’s report underscores the broader challenges facing the packaged food sector, with Campbell Soup’s performance seen as a bellwether for the industry’s current health. The company’s shares continue to be watched closely as investors and analysts alike gauge the potential for recovery in an increasingly competitive market landscape.
In other recent news, Campbell Soup Company has announced a regular quarterly dividend of $0.39 per share, payable on August 4, 2025, to shareholders on record by July 3, 2025. This decision underscores Campbell’s commitment to providing returns to its investors. Meanwhile, several analyst firms have adjusted their projections for Campbell Soup. Evercore ISI reduced its price target to $41 from $46, maintaining an In Line rating, due to challenges in the Snacks division and the potential impact of tariffs on earnings per share (EPS). Piper Sandler also lowered its price target to $42 from $45, retaining an Overweight rating, with concerns about the resumption of EU tariffs affecting the company’s EPS.
TD Cowen maintained a Hold rating with a $36 target, expressing apprehension over potential tariff headwinds and revising its fiscal year 2026 EPS projection to $2.86. Citi analyst Thomas Palmer decreased the price target to $33 from $37, maintaining a Sell rating, and anticipates a slight EPS beat in the fiscal third-quarter earnings for 2025. The company faces increased costs due to tariffs and challenges with declining consumption trends for Rao’s products. These recent developments highlight the various pressures Campbell Soup is navigating, including tariffs and competition, as it continues to strategize for future growth.
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