Citi Cuts The Campbell’s Company (CPB)’s Price Target by $1

Citi maintained its Sell rating on The Campbell’s Company (NASDAQ:CPB)’s shares and reduced its price objective from $33 to $32.

A woman preparing a meal using packaged foods with V8 juices and the other products of the company in the background.

The analyst says investors left the company’s management follow-up call with a clearer understanding of the incremental difficulties The Campbell’s Company (NASDAQ:CPB) is facing a 7c EPS beat but more cautious commentary on Q4, even before taking tariff headwinds into account.

According to the analyst, the company’s FY25 EPS projection drops from $2.95 to $2.92 to reflect somewhat higher inflation and tariffs, while its FY26 EPS forecast drops from $2.89 to $2.85.

As consumers become more discerning about their food expenditures, the firm’s snack business faces challenges. According to The Campbell’s Company (NASDAQ:CPB)’s Chief Executive Mick Beekhuizen, consumers are becoming pickier, reducing their purchases of discretionary snacks, and preparing more meals at home.

During a call with analysts on Monday, Beekhuizen stated that these developments are harming the company’s snacking business, which is seeing increasing competition and is continuing to recover more slowly than expected.

At the same time, its meal and beverage segment has benefited from consumers’ growing attention to components that can stretch limited food budgets, he added.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None.