RBC Capital maintained its Sector Perform rating on Campbell Soup Co. (NYSE: CPB) with a price target of $21, even as the packaged food company faces mounting pricing pressures and softening consumer demand.
The brokerage kept its assessment ahead of Campbell’s earnings release scheduled for September 3, noting that fourth-quarter results are expected to align with consensus estimates, which fall below the company’s own revenue guidance. RBC anticipates a challenging volume environment for fiscal year 2027 due to deteriorating consumer financial health, though pricing actions are projected to support earnings per share.
Campbell’s shares have declined 23% year-to-date to $22.33, underperforming broader food sector benchmarks. The stock’s InvestingPro fair value estimate stands at $27.56, reflecting a potential upside of roughly 23% from current levels. The company’s dividend yield remains elevated at 7.2%, providing some support amid price volatility.
Revenue for the past 12 months fell 2.9%, while seven analysts have revised earnings estimates downward for the next reporting period. Options data suggests a 4.5% expected move in Campbell’s stock around the earnings announcement, indicating heightened uncertainty.
Other major banks have adjusted their outlooks on Campbell’s in recent weeks. UBS raised its price target to $18 with a Sell rating, while trimming its fiscal 2026 earnings per share forecast to $0.38, slightly below the $0.39 consensus. TD Cowen lifted its target to $22 with a Hold rating and revised its fiscal 2027 EPS estimate to $1.87 from a $1.90 consensus. William Blair initiated coverage with a Market Perform rating, and Bank of America highlighted persistent inflationary pressures on staples, rising commodity costs, and limited pricing power as key headwinds for margins.
