Jefferies analyst Rob Dickerson lowered the firm’s price target on Campbell’s (CPB) to $40 from $42 and keeps a Hold rating on the shares. The firm notes both segments missed Q2 organic growth expectations and Snacks op. profit/margin missed by about 17%/200 bps, with management speaking to lack of category recovery. Management also lowered 2025 sales/EBIT/EPS guide by 3%/5%/5% at midpoints, taking into account another pressured Snacks sales quarter before Q4 stabilization, a 13.5% Snacks op. margin, and more price investment than thought, Jefferies adds. Targets laid out at the company’s Investor Day need revisiting, in the firm’s view.
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