Campbell’s ‘rosy’ perception of macros may prove optimistic, says RBC Capital

RBC Capital analyst Nik Modi keeps a Sector Perform rating and $51 price target on Campbell’s Company (CPB) ahead of its Q1 results. The company’s rosy perception of the macros and their categories may prove overly optimistic, which could lead to downward guidance revisions as the year progresses, the analyst tells investors in a research note. Consumer trends like value-seeking and shift to meals at-home should provide some benefit to the Meals & Beverages segment, but RBC is remaining cautious on heightened competition and lack of visibility affecting the broader packaged food industry, the firm added.