Campbell Soup (CPB) PT Lowered to $42 at Piper Sandler; 'Tariffs Still A Wild Card'

Piper Sandler analyst Michael Lavery lowered the price target on Campbell Soup (NASDAQ: CPB) to $42.00 (from $45.00) while maintaining an Overweight rating.

The analyst commented: "Tariffs Still A Wild Card; CPB remains exposed to EU tariffs that are now paused for 90 days, though we see a potential 8-9% EPS headwind if resumed. We cannot predict what may happen, so we leave our estimates unchanged for EU tariffs. CPB imports tomato sauce from Italy for its Rao's pasta and pizza sauces. It also has roughly six years left on its La Regina contract, limiting its ability to move production to the US even if it wanted to. Steel costs are also higher, ostensibly from tariff hikes that we believe would be passed on to CPB, even despite its annual steel cost contracts. We maintain our $3.00 F25E EPS, but lower our $3.20 F26E EPS to $3.08 and see downside risk to our estimates if EU tariffs kick in. We lower our target from $45 to $42, still ~14x our C2026E EPS."

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