Key Stats for Campbell’s Stock
- YTD price change for Campbell’s stock: -26%
- $CPB Share Price as of Apr. 28: $21
- 52-Week High: $37
- $CPB Stock Price Target: $24
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What Happened?
Campbell’s (CPB) stock dropped after Bernstein SocGen Group downgraded the packaged food company from Outperform to Market Perform, slashing its price target from $27 to $21.
The stock currently trades at $20.81, dangerously close to its 52-week low.
- Bernstein said its original upgrade thesis from May 2024 simply hasn’t played out. The problems are spread across multiple parts of the business.
- In soup, the flagship Campbell’s brand has actually recovered market share in condensed soup.
- The catch? The condensed soup subcategory itself is shrinking. So winning share in a declining market doesn’t move the needle much.
- The Snacks segment is where things get messier.
- Cape Cod and Kettle chips have both lost ground to PepsiCo and Utz, with negative sales trends dating back to early 2025.
- Snyder’s pretzels have also been sliding for over a year, with market share down more than 340 basis points year-over-year.
- Management has begun cutting prices on Snyder’s products to stabilize the business, but the trends remain negative.
On the earnings front,
- Q2 adjusted EPS came in at $0.51, missing estimates of $0.57.
- Revenue over the last twelve months fell 0.8% to $10.04 billion.
- Multiple analysts have cut price targets in response, including BofA, TD Cowen, and RBC Capital. BTIG initiated coverage with a Neutral rating.
The one bright spot is Rao’s, which grew in-market consumption 14.5% in Q2. Management is still targeting high single-digit growth for the full year from that brand, and it remains a genuine differentiator in the Meals & Beverages segment.
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What the Market Is Telling Us About Campbell’s Stock
Campbell’s stock has now fallen nearly 43% over the past year. At current prices, a dividend yield of more than 7% is eye-catching, and the company has paid dividends for 56 consecutive years.
But Campbell’s stock faces a real question of whether the Snacks business can stabilize without a more meaningful strategic shift.
The Q2 call made clear that fresh bakery, chips, and pretzels all need work. Management is being realistic about the time line, flagging that meaningful improvement is more likely in Q4 than Q3.
Campbell’s stock may look cheap on a yield basis, but the operational headwinds are real and not yet resolved.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
