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On Friday, UBS analyst Peter Grom reaffirmed a Sell rating and a $36.00 price target for Campbell Soup (NASDAQ:CPB) stock, despite InvestingPro analysis suggesting the stock is currently undervalued. Grom provided insights ahead of the company’s third-quarter earnings report, which is scheduled for release before the market opens on June 2. The analyst predicts third-quarter earnings per share (EPS) of $0.70 for Campbell Soup, slightly above the consensus of $0.66 to $0.67 from Visible Alpha/FactSet. This forecast is based on the expectation of reduced marketing expenses during the quarter.
Campbell Soup’s shares have seen a decline, dropping 13.2% since the announcement of their second-quarter results in early March. Currently trading at $34.21, near its 52-week low, this performance lags behind that of its peers in the Packaged Food industry by 830 basis points. Notable for investors, InvestingPro data shows the company has maintained dividend payments for 55 consecutive years, with a current attractive yield of 4.57%. With a generally disappointing earnings season for the Packaged Food sector, investors are anticipating a challenging report next week, mainly due to concerns over weaker organic revenue growth.
Despite the expected difficulties, market sentiment appears to be mixed as the earnings date approaches. According to Grom, this is due to the belief that expectations for the quarter and the full year 2025 guidance are already low. Additionally, the valuation of Campbell Soup’s stock is seen as attractive on both an absolute and relative basis, with InvestingPro data showing a P/E ratio of 19.47 and solid revenue growth of 9.15% over the last twelve months. For deeper insights into Campbell Soup’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. Grom acknowledges that the stock’s valuation may mitigate some of the downside risk when the earnings are released. However, he also notes that without clearer signs of fundamental improvement, which he does not foresee in the upcoming earnings report, it is challenging to identify a catalyst that would significantly boost the stock’s value.
Investors and analysts will be closely monitoring Campbell Soup’s third-quarter earnings release on June 2, looking for indications of the company’s financial health and future prospects.
In other recent news, Campbell Soup Company (NYSE:CPB) is facing a series of challenges and adjustments as analysts weigh in on its financial outlook. RBC Capital Markets maintained its Sector Perform rating with a price target of $44, expressing concerns over the company’s upcoming third-quarter earnings and the overall packaged food market. Evercore ISI revised its price target to $41 from $46, citing underperformance in the Snacks division and potential tariff impacts. Piper Sandler also lowered its target to $42 while maintaining an Overweight rating, highlighting the risks associated with European Union tariffs and increased steel costs.
TD Cowen kept its Hold rating with a $36 target, anticipating greater tariff headwinds for Campbell Soup compared to its peers. The firm adjusted its fiscal year 2026 EPS projection to $2.86, which is below the consensus estimate. Citi analyst Thomas Palmer reduced the price target to $33 from $37, maintaining a Sell rating and projecting a slight EPS beat for the fiscal third quarter of 2025. This adjustment reflects concerns over rising costs and declining consumption trends for certain products.
Overall, the company’s financial outlook is marked by cautious optimism from analysts, with a focus on tariff implications and performance in key segments. Investors are closely watching for Campbell Soup’s upcoming earnings report for further insights into its strategic direction amidst these challenges.
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