EU and US could reach trade deal this weekend - Reuters
On Tuesday, TD Cowen analysts reiterated a Hold rating for Campbell Soup stock (NASDAQ: NYSE:CPB) with a price target of $36.00. This decision follows Campbell’s recent announcement of its third-quarter earnings per share (EPS) surpassing expectations. The stock, currently trading near its 52-week low with a P/E ratio of 19.3x and an attractive 4.55% dividend yield, appears undervalued according to InvestingPro analysis.
Despite the positive EPS results, Campbell Soup has adjusted its full-year 2025 EPS forecast to the lower end of its previous range. The company noted a 2% sales pull-forward that will impact the fourth quarter. While TD Cowen analysts expressed concerns about ongoing challenges in the Snacks business and weaker sales for the Rao’s brand, InvestingPro data shows the company maintaining strong revenue growth of 8.65% over the last twelve months.
The analysts highlighted the potential for EPS headwinds due to tariffs. Their price target of $36.00 is based on a 12.5x price-to-earnings (P/E) multiple against their forward 12-month EPS estimate. This reflects a discounted valuation compared to Campbell’s average five-year historical P/E of 15.2x.
TD Cowen’s stance considers the weak trends in the Snack category, slowing growth in Rao’s sales, and tariff-related pressures. The firm remains cautious about Campbell Soup’s future performance amidst these challenges.
In other recent news, Campbell Soup’s fiscal third-quarter results have prompted several analysts to adjust their outlooks on the company. RBC Capital, Stifel, and Barclays (LON:BARC) have all lowered their price targets, citing challenges in the Snacks division and potential impacts from tariffs. Despite a positive surprise in earnings per share (EPS) and earnings before interest and taxes (EBIT), Campbell Soup’s management anticipates reduced profitability for the full year. UBS analysts also lowered their price target, maintaining a Sell rating, and expressed concerns about fiscal year 2026, highlighting ongoing challenges in the snacks category and increased marketing costs. Stifel noted that the Snacks division’s recovery is slower than expected, leading to a projection of EPS at the low end of its range. Barclays pointed out potential fiscal year 2026 headwinds, including tariff impacts and increased brand support spending. BofA Securities adjusted their price target and underlined shipment timing issues and tariff effects as factors influencing Campbell Soup’s financial projections. These recent developments reflect the ongoing challenges Campbell Soup faces in navigating competitive pressures and external economic factors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.