Stifel has maintained its Hold rating on Campbell Soup (NASDAQ: CPB) with a consistent price target of $50.00.
During Campbell Soup’s investor day in New York, the company presented its growth forecast for the upcoming three years.
The revised growth expectations include contributions from the recently acquired Sovos business and an expanding Snacks segment.
Additionally, Campbell Soup has set new margin goals for its business segments, aiming to boost profitability through further cost-saving measures.
Campbell Soup Company (NYSE:CPB) reported strong fourth-quarter results for fiscal year 2024, highlighted by improved volume across divisions and double-digit growth in adjusted earnings before interest and taxes (EBIT) and earnings per share (EPS).
The acquisition of Sovos Brands significantly influenced these positive results. The company also announced the divestiture of its Pop Secret business, signaling a strategic shift towards core brands.
Wells Fargo adjusted its outlook on Campbell Soup, increasing the price target from $49.00 to $51.00 while maintaining an Equal Weight rating on the stock. The revised price target is based on an unchanged multiple of 14.5 times the projected calendar year 2026 earnings per share.
Similarly, TD Cowen maintained its Hold rating on Campbell Soup, reflecting potential for increased profitability driven by productivity improvements.
For the fiscal year 2025, Campbell Soup provided optimistic guidance, expecting a recovery in the Snacks division, with net sales projected to grow approximately 9% to 11%, adjusted EBIT growth projected to be 9% to 11%, and adjusted earnings per share increasing 1% to 4%.
InvestingPro Insights
As Campbell Soup (NASDAQ:CPB) continues to set its sights on growth and profitability, current metrics from InvestingPro provide a snapshot of the company's financial health and market sentiment. With a market capitalization of $15.26 billion and a forward P/E ratio of 17.5, the company shows a valuation that reflects its growth objectives. Notably, Campbell Soup has a track record of maintaining dividend payments, with a current dividend yield of 2.9%, marking 54 consecutive years of such payouts—a testament to its financial stability.
InvestingPro Tips highlight that despite 11 analysts revising their earnings downwards for the upcoming period, the company is expected to remain profitable this year, with a strong return over the last three months, as evidenced by a 19.53% price total return in that period. This performance is particularly impressive given that short-term obligations exceed liquid assets, suggesting the company's operational efficiency and cash flow management are key factors in its resilience.
Investors may also find interest in the fact that, according to InvestingPro, Campbell Soup's fair value is estimated at $50.84, which is slightly above the current price target set by Stifel. This suggests that the stock may have room for a modest upside. For those looking to delve deeper into the financials and future projections of Campbell Soup, InvestingPro offers additional tips and insights on its platform.
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