Campbell’s Company (CPB) Stock Plunges 1.94% Amid Analyst Downgrades, Tariffs, and Operational Struggles

The share price of The Campbell’s Company (CPB) fell to its lowest level since July 2025 on October 13, 2025, with an intraday decline of 2.11%. The stock closed down 1.94%, signaling renewed investor caution amid a confluence of operational and market-driven challenges.

Recent analyst activity has intensified pressure on CPB, with multiple firms downgrading the stock and lowering price targets. Piper Sandler reduced its rating to “Neutral” in August, citing “snack weakness” and tariff-related costs, while Stifel Nicolaus cut its price target to $34.00. These moves reflect broader skepticism about the company’s ability to offset rising input costs and maintain profitability, particularly in its snacks division, which has underperformed due to shifting consumer preferences and competitive pressures.

Tariff impacts are compounding the company’s struggles, with U.S. steel and aluminum tariffs expected to reduce margins by 4% in fiscal 2026. Limited flexibility to pass these costs to consumers, combined with inflationary pressures on raw materials, has eroded confidence in Campbell’s cost management strategies. Analysts highlight that the company’s historical reliance on efficiency measures is less effective in a prolonged high-cost environment.

Operational challenges in the snacks segment remain a critical concern. The division faces declining demand for traditional products as consumers shift toward healthier and plant-based alternatives. Competitors like PepsiCo and Mondelez have gained traction in these niches, leaving Campbell’s playing catch-up. Additionally, mixed institutional investor activity—marked by both increased and reduced holdings—underscores uncertainty about the company’s strategic direction and long-term value proposition.

Recent leadership changes, including the appointment of Todd Cunfer as CFO, signal a strategic pivot toward financial optimization. However, analysts caution that execution risks and macroeconomic headwinds, including rising interest rates, will test the company’s ability to stabilize its stock. With a projected revenue decline and a bearish earnings outlook, CPB’s path to recovery hinges on its capacity to innovate and regain pricing power in a fragmented consumer staples landscape.