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On Monday, Stifel analysts lowered the price target for Campbell Soup stock (NASDAQ: CPB) to $38 from $40 while maintaining a Hold rating. The stock, currently trading at $34.26, is near its 52-week low, though InvestingPro analysis suggests the company is undervalued based on its Fair Value model. This adjustment follows Campbell Soup’s recent earnings report, where the company posted a third-quarter earnings per share (EPS) of $0.73. This figure, although representing a 3% decline, exceeded both Stifel’s and the consensus estimates by $0.08. Notably, the company maintains a strong dividend track record, having increased payments for 55 consecutive years, with a current yield of 4.55%. For deeper insights into Campbell’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis and additional metrics.
The company’s Meals and Beverages division continues to perform well, with notable market share gains in its soup portfolio. However, the recovery in the Snacks division is lagging due to weaker category trends and increased competition. Campbell Soup expects its EPS to be at the lower end of its range, primarily because of the slower-than-anticipated recovery in the Snacks segment. Despite these challenges, the company has maintained 9.15% revenue growth over the last twelve months.
Stifel analysts noted that Campbell Soup’s guidance does not account for the impact of tariffs, which are projected to reduce EPS by $0.03 to $0.05 in the fourth quarter. Consequently, Stifel revised its fiscal year 2025 and 2026 EPS estimates to reflect these challenges.
The Hold rating remains unchanged, with the price target adjusted to incorporate the revised earnings estimates.
In other recent news, Campbell Soup Company (NYSE:CPB) reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.73, compared to the forecast of $0.65. The company also exceeded revenue predictions, reporting $2.48 billion against an anticipated $2.43 billion. Despite these positive results, Campbell Soup’s management indicated a more cautious profit outlook for fiscal 2025, citing challenges in the Snacks segment as a key concern. Jefferies analysts responded by reducing their price target to $34 from $37 while maintaining a Hold rating, acknowledging the company’s mixed performance.
Additionally, Citi analysts adjusted their outlook on Campbell Soup stock, revising the price target to $32 from $33 while maintaining a Sell rating. The decision follows a recent earnings report where Campbell Soup posted a $0.07 earnings per share beat but delivered cautious commentary regarding the fourth quarter of 2025. Citi analysts highlighted several challenges facing Campbell Soup, including cost of goods sold inflation, tariffs, and weak demand in the Snacks category. These factors were discussed in a recent call with Campbell Soup management, who also outlined potential mitigating strategies such as sourcing changes, pricing adjustments, innovation, marketing, and cost-saving measures.
Despite these strategies, Citi analysts expressed concerns about Campbell Soup’s earnings growth prospects for the fiscal year 2026. The analysts noted that unless tariffs are rolled back, the company may struggle to achieve earnings growth. Campbell Soup’s management is closely monitoring these factors as they navigate the evolving market conditions. The company plans to focus on brand investment and innovation, with potential increased marketing spend to drive future growth.
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