TD Cowen analyst Robert Moskow has maintained their neutral stance on CPB stock, giving a Hold rating today.
Robert Moskow’s rating is based on several factors impacting Campbell Soup’s financial outlook. The company reported a decline in organic sales growth, particularly in its Snacks segment, which fell short of expectations. This was attributed to increased competition, especially from private label brands, and manufacturing inefficiencies that affected profit margins. Additionally, Campbell’s management has lowered its guidance for fiscal year 2025, reflecting a more challenging environment for its Snacks and other product lines.
Furthermore, the outlook for fiscal year 2026 remains cautious, with anticipated continued pressure on the Snacks segment due to rising competition and potential impacts from tariffs. The company’s strategic adjustments, such as introducing smaller pack sizes for certain products, aim to address these challenges but may take time to yield results. These factors contribute to a Hold rating, as the stock’s potential for significant upside appears limited in the near term.
In another report released today, J.P. Morgan also downgraded the stock to a Hold with a $37.00 price target.
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