Campbell Soup’s Market Challenges and Valuation: A Hold Recommendation

Campbell Soup (CPB – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Megan Alexander from Morgan Stanley maintained a Hold rating on the stock and has a $35.00 price target.

Megan Alexander’s rating is based on several factors influencing Campbell Soup’s current market position. The company has faced challenges in its snacks segment, with a notable decline in volume, which has impacted overall sales growth. Despite some positive performance in the Meals & Beverages segment, the struggles in snacks have overshadowed these gains. Additionally, the potential impact of tariffs on earnings per share (EPS) in the future adds to the uncertainty.
The valuation of Campbell Soup’s stock is relatively compressed, which provides some cushion against these challenges. However, the ongoing market share declines and weak sales growth outlook contribute to a cautious stance. As a result, Megan Alexander has rated the stock as a Hold, acknowledging both the risks and the valuation aspects.