Morgan Stanley Cuts Campbell’s Company (CPB) Price Target, Maintains Equal Weight Rating

Morgan Stanley has reduced its price target on The Campbell’s Company (NASDAQ:CPB) to $35 from $40, maintaining an Equal Weight rating following the company’s recent earnings release. The adjustment reflects concerns about slowing momentum in key product segments and external cost pressures that could hinder future profitability.

Jasni/Shutterstock.com

In a note to investors, the firm pointed to continued headwinds in the snacks category, where demand softness and increased competition are weighing on performance. Despite efforts to revitalize product offerings and drive innovation, organic sales growth is expected to remain tepid in the near term. Tariff-related uncertainty is also factoring into the firm’s more cautious view. Morgan Stanley highlighted the risk that continued trade measures could squeeze margins, particularly as input costs remain elevated. These pressures, if sustained, could make it more difficult for The Campbell’s Company (NASDAQ:CPB) to protect earnings per share heading into fiscal year 2026.

While the company has taken steps to streamline operations and manage pricing, the analyst noted that external challenges are likely to limit upside potential. Campbell’s has been navigating a shifting consumer landscape, with changing preferences and cost-conscious behavior complicating its recovery efforts. Morgan Stanley’s revised forecast underscores a broader theme in the packaged food sector: stable brands face increasing difficulty maintaining growth in an environment shaped by inflation, trade policy, and evolving consumer habits.

While we acknowledge the potential of CPB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CPB and that has 100x upside potential, check out our report about this cheapest AI stock.

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

Disclosure. None.