Campbell Soup Company Stock Analysis
The Campbell Soup Company (CPB) shares experienced a slight decline on Thursday, trading 0.49% lower at $42.48. This movement followed the release of the company's first-quarter earnings report and subsequent analyst commentary.
RBC Capital Markets: Analyst Nik Modi maintained a "Sector Perform" rating with a price target of $51. While acknowledging the positive impact of Sovos' results on M&B, Modi expressed concerns about competition affecting the Salty Snacks and Cookies segments. Despite management's maintained guidance for FY25, Modi's adjusted estimates reflect a more cautious outlook on the packaged food category, resulting in a lower FY25 EPS estimate of $3.14.
Analyst Michael S. Lavery reiterated an "Overweight" rating with a price target of $56. Lavery acknowledged the near-term drag caused by increased spending but projected average EPS gains of 7-8% over the next six quarters. Lavery lowered the FY25 EPS estimate to $3.14 and the FY26 EPS estimate to $3.33 due to anticipated sequential improvement in volume and share gains in the second quarter of 2025.
Mixed Performance: Sovos' strong results contrasted with challenges faced by the Salty Snacks and Cookies segments.
Despite a challenging consumer environment, management maintained its FY25 guidance.
Both analysts expressed concerns about the consumer market and potential risks to earnings.
Campbell's continues to invest in Rao's innovation and marketing, expanding into white sauces and exploring geographic expansion in Canada.