Campbell Soup Faces Financial Challenges: Analyst Issues Sell Rating Amid Weak Growth and Cost Pressures

Peter Grom, an analyst from UBS, maintained the Sell rating on Campbell Soup. The associated price target remains the same with $30.00.

Peter Grom has given his Sell rating due to a combination of factors impacting Campbell Soup’s financial outlook. The company is facing significant challenges, including weak category growth across its portfolio and substantial cost headwinds that are expected to negatively affect its financial performance in FY26. Although the recent quarter showed some positive aspects, such as a solid earnings beat driven by lower marketing expenses and a favorable tax rate, these are not seen as sustainable improvements.
Furthermore, Campbell Soup’s initial guidance for FY26 suggests a decline in net sales and EBIT, with expectations for adjusted EPS to fall within a range that is largely in line with or slightly below market estimates. The anticipated decline in EPS is attributed to tariffs and weaker top-line performance, along with increased marketing and selling expenses. These factors contribute to a cautious outlook, leading to the Sell rating as the company’s financial prospects remain uncertain.

In another report released yesterday, Barclays also maintained a Sell rating on the stock with a $30.00 price target.