Cautious Outlook on Campbell Soup: Hold Rating Amid Volume Pressures and Limited Pricing Power

Analyst Robert Moskow from TD Cowen maintained a Hold rating on Campbell Soup and increased the price target to $31.00 from $29.00.

Robert Moskow has given his Hold rating due to a combination of factors impacting Campbell Soup’s financial outlook. The company’s recent earnings guidance was less negative than anticipated, largely due to accelerated cost savings and short-term tariff mitigation. However, Moskow remains cautious about the stock’s recent rally, citing ongoing volume pressures in the Snacks segment and limited pricing power in the Meals category as significant risks to the company’s fiscal year 2026 guidance.
Despite a slight improvement in the fourth quarter, U.S. retail consumption and volume trends remain weak, with Snacks experiencing a 2% decline due to competitive pressures and reduced consumer spending. While management is optimistic about sequential improvements in Snacks, predicting precise turning points remains challenging. Furthermore, the company’s strategy of implementing selective pricing actions to counteract tariffs is expected to constrain operating margin recovery, which is currently below historical averages. These factors contribute to Moskow’s decision to maintain a Hold rating on Campbell Soup’s stock.

Moskow covers the Consumer Defensive sector, focusing on stocks such as Kraft Heinz, Celsius Holdings, and JM Smucker. According to TipRanks, Moskow has an average return of 3.2% and a 46.81% success rate on recommended stocks.

In another report released yesterday, Jefferies also reiterated a Hold rating on the stock with a $32.00 price target.