Campbell Soup Faces Tariff Challenges: Analyst Recommends Hold Rating

In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on Campbell Soup, with a price target of $29.00.

Robert Moskow has given his Hold rating due to a combination of factors impacting Campbell Soup’s financial outlook. A significant reason for this rating is the anticipated increase in tariff-related costs, which are expected to rise substantially in FY26. The company faces challenges in mitigating these costs, particularly concerning tin-plate and imported Rao’s sauces, which could lead to a lag in cost realization.
Additionally, Campbell Soup’s guidance for the fourth quarter suggests that the tariff headwinds might be understated, as temporary mitigation benefits are unlikely to persist. The increase in tariffs on tinplate steel and aluminum, as well as potential hikes on Rao’s products, further complicate the financial landscape. Although Campbell Soup has some pricing power due to its market position, the expected gross margin pressure from cost inflation and tariffs presents a challenge, leading to a cautious Hold rating.

In another report released on July 15, Jefferies also maintained a Hold rating on the stock with a $31.00 price target.