On Thursday, Evercore ISI adjusted its outlook on Campbell Soup (NASDAQ:NYSE:CPB), reducing the price target to $48 from the previous $49 while retaining an In Line rating for the stock. The revision comes as the market evaluates Campbell's prospects, particularly in light of recent changes in the company's leadership and its financial guidance for the second half of fiscal 2025. According to InvestingPro data, six analysts have recently revised their earnings expectations downward, while the stock currently trades at $42.69, near its 52-week low of $40.26.
The firm's commentary highlighted several key areas of focus for investors in the coming months. Attention is drawn to the company's broth segment, which is expected to cycle through the sales uplift it experienced due to issues with a private label manufacturer last year.
Additionally, the Snacks division is under scrutiny as it enters a period with potentially easier comparisons and the possibility that new growth initiatives could enhance organic sales growth. Despite current challenges, InvestingPro analysis shows Campbell maintains a strong dividend history, having paid dividends for 54 consecutive years, with a current yield of 3.47%.
The lowered price target coincides with a reduction in earnings per share (EPS) estimates for Campbell Soup, reflecting a cautious stance in the wake of a lower-than-anticipated guide for the second quarter of fiscal 2025. Despite the adjustments, Evercore ISI's In Line rating suggests that the firm's view on the stock remains neutral, indicating neither a particular optimism nor pessimism about its performance prospects.
The update from Evercore ISI comes after yesterday's announcement from Campbell Soup, which provided investors with an opportunity to reassess the company's outlook. As the second half of fiscal 2025 approaches, the market will be closely monitoring Campbell's performance, especially in the areas identified by the firm as critical to the company's success.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.