B of A Securities maintains Underperform rating on Campbell's with new PT of $30.

B of A Securities maintains Underperform rating on Campbell's with new PT of $30.

Campbell's Soup Company (CPB) reported its quarterly earnings for the period ended July 2025, delivering a surprise beat on the Zacks Consensus Estimate. The company posted earnings of $0.62 per share, compared to the expected $0.57 per share. This marks a +8.77% earnings surprise, which is a significant improvement over the previous quarter's earnings of $0.73 per share. Revenues for the quarter totaled $2.32 billion, slightly missing the Zacks Consensus Estimate by 0.55% [1].

The company's earnings have been strong, with Campbell surpassing consensus EPS estimates four times over the last four quarters. However, the stock has underperformed the broader market, with shares down about 24.9% year-to-date compared to the S&P 500's gain of 9.1%. The sustainability of Campbell's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [1].

Analysts have expressed mixed sentiments towards Campbell's stock. While the company's fundamentals are strong, indicated by a high internal diagnostic score of 9.15, technical indicators suggest caution, with a weak score of 3.33. Analyst ratings range from "Strong Sell" to "Neutral," with a performance-weighted rating of 2.79 [3]. Additionally, institutional outflows have been significant, with large funds trending negatively, while retail interest remains high [3].

Institutional investors may be cautious due to recent developments in the food and delivery sectors. DoorDash's expansion and the growing diabetic food market could reshape Campbell's competitive landscape. The global diabetic food market is projected to reach USD 24.86 billion by 2033, presenting an opportunity for Campbell's to adjust its product line [3].

Bank of America Securities has maintained an Underperform rating on Campbell's with a new price target of $30. The rating reflects concerns about the company's earnings outlook and the broader food industry's challenges. The Zacks Rank for Campbell's remains at #5 (Strong Sell), suggesting that the stock is expected to underperform the market in the near future [1].

Investors should closely monitor Campbell's earnings outlook and management's commentary to gauge the stock's future performance. The current consensus EPS estimate is $0.78 for the coming quarter and $2.62 for the current fiscal year. The company's earnings surprise and strong fundamentals may provide some optimism, but technical indicators and analyst ratings suggest caution [1].

References:
[1] https://finance.yahoo.com/news/campbells-cpb-q4-earnings-beat-122501387.html
[2] https://au.finance.yahoo.com/news/campbells-cpb-q4-earnings-beat-122501387.html
[3] https://www.ainvest.com/news/stock-analysis-campbell-outlook-technical-downturn-mixed-fundamentals-analysts-2509/