UBS Reiterates Sell Rating on The Campbell's Company
UBS maintains its sell rating for CPB with a $17 price target, a 25.47% downside from the current price.
Key Points
- UBS analyst Peter Grom reiterated a sell rating on The Campbell's Company (CPB) with a price target of $17 on June 9, 2026.
- UBS's $17 price target implies 25.47% downside from The Campbell's Company's ($CPB) current $22.81 share price.
- The Campbell's Company, trading at $22.73, has a market cap of $6.8 billion and a P/E ratio of 11.18.
- Insiders like Dorrance Bennett Jr and others have been buying shares, while UBS and other analysts maintain cautious ratings.
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On June 9, 2026, UBS analyst Peter Grom reiterated a sell rating for The Campbell's Company (NasdaqGS: CPB) with a price target of $17. This comes as shares of Campbell's trade at $22.73.
Other Institutional Activity in The Campbell's Company
BlackRock, Inc. reduced its holdings significantly, cutting 7,791,883 shares to a total of 17,112,705 shares valued at about $381.1 million. Invesco Ltd. increased its position by 3,776,768 shares, resulting in 13,496,177 shares worth approximately $300.6 million. Vanguard Capital Management LLC established a new stake, holding 13,160,519 shares valued at $293.1 million. Meanwhile, State Street Corp and Dimensional Fund Advisors LP added 1,473,614 and 1,933,814 shares, respectively, bringing their totals to 12,509,743 shares ($278.6 million) and 10,239,231 shares ($228 million).
The Campbell's Company Stock Down 2.5%
Shares of The Campbell's Company are trading around $22.73. The company has a market capitalization of $6.8 billion and a P/E ratio of 11.18. Its forward P/E is slightly higher at 11.49. The stock's beta is a low 0.01, indicating minimal volatility compared to the market. Over the past year, the stock has ranged from a low of $19.56 to a high of $34.17, with current 50-day and 200-day moving averages of $20.90 and $26.74, respectively.
$CPB price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
For its latest reporting period, The Campbell's Company generated revenue of approximately $9.93 billion, though revenue growth was slightly negative at -4.4%. The company reported earnings per share of $2.04, with a net margin of 6.12% and a return on equity of 15.39%. The next earnings report is expected on June 8, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target cuts vs 0 raises.
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EPS & revenue
EPS beat estimates by 3.5%. Revenue missed estimates by 1.6%.
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Profit surprise
EBITDA missed by 36 percent. Operating income missed by 12 percent.
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Pre-earnings setup
Bar was low, analysts cautious going in.
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Analyst signal
5 target cuts.
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Earnings quality
Gross margin down 1.9 points. Operating margin down 2.3 points. Positive free cash flow.
Earnings Call Summary
Campbell beat EPS by one penny but missed revenue by $39 million in the quarter. The big problem is Snacks, where the segment margin dropped to 7 percent, down 390 basis points, due to a 6 percent sales decline and deleverage in manufacturing and distribution from Fresh Bakery execution failures that began before the winter storm. RAO'S in Meals and Beverages grew 14.5 percent, driving strong consumption in Q2, but that growth is not expected to sustain. Management is shifting marketing dollars to promotional pricing on chips and pretzels to compete, investing $100 million in overhead cuts, and suspending share buybacks to focus on debt reduction as leverage sits above four times.
Guidance Management reaffirmed full year earnings guidance of about $0.90 per share but provided no new revenue or near-term sales forecast. They expect Snacks to decline about 4 percent in the second half of the year, with Fresh Bakery challenges to persist into Q3 before improving in Q4. Meals and Beverages is expected to see flat to down 1 percent consumption in the back half after strong Q2 driven by holiday demand and RAO'S growth.
Very weak report. The release materially worsened the forward outlook.
Dividend
The Campbell's Company offers an annual dividend rate of $1.56, yielding 6.84%. The dividend payout ratio stands at 76.47%.
Insider Buying and Selling at The Campbell's Company
Recent insider activity includes purchases by Dorrance Bennett Jr, who bought 300 shares on June 9, 2026, at an average price of $21.45. Other insiders, including Mary Alice Dorrance Jr, Marc Bradley Lautenbach, Maria Teresa Hilado, Howard Averill, and Kurt Schmidt, also acquired shares on March 30, 2026.
Analysts Set New Price Targets
On June 9, 2026, UBS maintained its sell rating with a $17 price target. RBC Capital also maintained a hold rating with a $21 target. B of A Securities reiterated a sell rating, targeting $18, while Barclays set a $19 target with a sell rating on June 8. Morgan Stanley held its position with a $21 target on June 5. The overall analyst consensus is a hold, with a mean price target of $21.44 among 18 analysts.
About The Campbell's Company
The Campbell's Company, headquartered in Camden, New Jersey, is a leading player in the consumer defensive sector, specifically within the packaged foods industry. The company, led by CEO Mick J. Beekhuizen, employs around 13,700 people. It operates through two main segments: Meals & Beverages and Snacks. Its products, including well-known brands like Campbell's soups, Swanson broths, and Pepperidge Farm snacks, are sold across various retail channels in the U.S. and internationally.
Bottom Line
UBS's reaffirmation of a sell rating on The Campbell's Company reflects cautious sentiment among analysts, despite the company's strong brand presence. Investors often track such ratings for insights into potential market moves, though it's essential to remember that these are backward-looking assessments. The Campbell's Company remains a significant player in the packaged foods sector, with a robust portfolio of products.
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