Sell Rating for Campbell Soup Due to Downward EPS Adjustments and Persistent Fundamental Challenges

UBS analyst Peter Grom maintained a Sell rating on Campbell Soup today and set a price target of $28.00.

Peter Grom has given his Sell rating due to a combination of factors impacting Campbell Soup’s financial outlook. Despite a slight upward revision in the 1Q EPS estimate, the overall FY26 EPS estimate has been adjusted downward, reflecting ongoing fundamental challenges that have not shown significant improvement. The company’s shares have underperformed compared to the XLP index, and while some investors see the current valuation as balanced, the persistent fundamental pressures suggest a skewed risk/reward profile to the downside.
Moreover, the sales performance for the first quarter is expected to be muted, with organic sales projected to decline more than consensus estimates. The company’s FY26 guidance already accounts for many of the challenges, but the anticipated decline in adjusted EPS and organic sales indicates limited growth potential. As a result, Grom has lowered the price target for Campbell Soup, suggesting that without a meaningful improvement in trends, the stock is unlikely to re-rate higher.