In a report released today, Robert Dickerson from Jefferies maintained a Hold rating on Campbell Soup (CPB – Research Report), with a price target of $44.00.
Robert Dickerson has given his Hold rating due to a combination of factors affecting the Campbell Soup Company’s performance and outlook. One of the primary considerations is the broader context of pressure on U.S. food management teams, which are facing challenges in volume recovery due to persistent consumer pressure. Similar to other companies in the sector like General Mills and Conagra, which have reduced their organic growth forecasts for the fiscal year, Campbell Soup has also been struggling with its volume growth, although it anticipates material improvement in soup volume in the second half of the fiscal year 2024.
Additionally, despite an initial spike in retail volumes in January, which Dickerson notes could be attributed to a particularly weak performance in the previous year, the overall volume trend for Campbell Soup has been negative, with a quarter-on-quarter decline of approximately 3.5% and a significant 12% decrease on a two-year stack. The company’s ability to stimulate consumer demand through increased promotions is yet to be proven effective, thus leading to uncertainty about Campbell Soup’s near-term performance. This uncertainty, paired with the broader industry challenges, underpins Dickerson’s decision to recommend a Hold on Campbell Soup’s stock.
Dickerson covers the Consumer Defensive sector, focusing on stocks such as JM Smucker, Campbell Soup, and Mondelez International. According to TipRanks, Dickerson has an average return of 4.7% and a 63.85% success rate on recommended stocks.
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Campbell Soup (CPB) Company Description:
Campbell Soup Co. operates two segments. Meals & Beverages includes the retail and foodservice businesses in the U.S. and Canada. The segment includes the following products: Campbell’s condensed and ready-to-serve soups; Swanson broth and stocks; Pacific Foods broth, soups and non-dairy beverages; Prego pasta sauces; Pace Mexican sauces; Campbell’s gravies, pasta, beans and dinner sauces; Swanson canned poultry; Plum baby food and snacks; V8 juices and beverages; and, Campbell’s tomato juice.
Snacks includes Pepperidge Farm cookies, crackers, fresh bakery and frozen products in U.S. retail, including Milano cookies and Goldfish crackers, as well as Snyder’s of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and other snacking products in the U.S. and Canada. Beginning in fiscal 2020, the segment also includes the retail business in Latin America.
The company was founded on November 23, 1922 and is headquartered in Camden, NJ. Campbell was founded in 1869.
Read More on CPB:
- GLP-1 users’ grocery spending declines 6%-9% after starting, says Morgan Stanley
- Campbell Soup, Sovos certify substantial compliance with second FTC request
- Campbell, Sovos certify substantial compliance with second FTC request
- Campbell Soup initiated with a Sell at Citi
- Campbell Soup price target raised to $47 from $46 at Morgan Stanley
