Barclays on Campbell Soup (CPB): 'expect shares to give up some ground on the open'
Barclays analyst Andrew Lazar reiterated an Underweight rating and $46.00 price target on Campbell Soup (NASDAQ: CPB)
The analyst comments "CPB's F2Q25 EPS came in a few pennies ahead of the Street (driven by lower than modeled SG&A), though organic sales declined -2% YOY vs the company's flattish YOY expectation. Basically, volume was weaker than modeled across the Meals & Beverages and Snacks segments, though in Meals & Beverages CPB faced a ~-1pt YOY impact due to a supplier disruption on its SpaghettiOs brand. And, while profitability came in better in Meals & Beverages, it was far weaker in Snacks, driven by unfavorable mix and operational headwinds in the fresh bakery business. More importantly, CPB revised lower its full-year 2025 organic sales and EPS expectations, with the company now looking for organic sales of -2% to flat YOY (vs. +0-2% YOY previously) and EPS in a $2.95-$3.05 range, or ~-5% lower than its previous $3.12- $3.22 range at the midpoint. Additionally, CPB does not anticipate returning to organic sales growth until F4Q25. In our view, expectations heading into CPB's print were already subdued and this guidance revision follows on the heels of many similar comments from packaged food peers. We'd still expect shares to give up some ground on the open, based primarily on the ongoing weakness in its key Snacks segment."
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Shares of Campbell Soup closed at $40.33 yesterday.