Update shared on04 Sep 2025
Analysts remain cautious on Campbell's due to ongoing weakness in core volumes, snack portfolio pressures, and rising costs—including EU tariffs—leading to subdued earnings expectations and a fair value estimate unchanged at $34.32.
Analyst Commentary
- Analysts are cautious on Campbell's due to ongoing weak volume trends in core categories, especially in Meals & Beverage.
- Persistent pressure in the snacks portfolio and slowing growth of key brands like Rao's have led to downward revisions of earnings and price targets.
- Rising costs, including higher EU tariffs on Rao's sauces, are expected to impact profitability going forward.
- Valuation is now seen as reasonable or fair by Bearish Analysts, limiting further upside unless sustained volume and margin growth materializes.
- Broader food sector headwinds, including slower center store category growth, weak consumption trends, and sector-wide EPS declines, further temper expectations for Campbell's relative performance.
What's in the News
- Stifel lowered Campbell's price target to $34 from $38 and maintained a Hold rating, citing ongoing weak consumption trends and forecasting just 1% organic sales growth with industry-wide EPS declines; the broker recommends caution and selectivity in food stock exposure (Stifel Periodical, 2025-07-29).
- Broader scrutiny is intensifying on the processed food industry, including Campbell's, following public health advocacy from the MAHA movement and high-profile coverage in The Wall Street Journal, raising the stakes for regulatory risk and public perception (WSJ Periodical, 2025-06-20).
- Campbell's completed the repurchase of 1,247,183 shares for $60.55 million (0.42% of outstanding shares) under the buyback program announced on December 3, 2024, but repurchased no shares from April 28, 2025, to August 3, 2025 (Key Developments, 2025-09-03).
- Under a separate buyback program announced on September 1, 2021, Campbell's completed the repurchase of 4,176,095 shares for $198.09 million (1.39% of outstanding shares), with no shares bought back in the latest tranche (Key Developments, 2025-09-03).
- Campbell's was added to the Russell 1000 Dynamic Index, potentially increasing visibility among index-tracking investors and funds (Key Developments, 2025-06-28).
Valuation Changes
Summary of Valuation Changes for Campbell's
- The Consensus Analyst Price Target remained effectively unchanged, at $34.32.
- The Consensus Revenue Growth forecasts for Campbell's remained effectively unchanged, at 0.5% per annum.
- The Net Profit Margin for Campbell's remained effectively unchanged, at 8.78%.
Disclaimer
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