On Thursday, Piper Sandler kept its Neutral rating on Campbell Soup (NASDAQ:NYSE:CPB) with a consistent price target of $56.00. The firm's analysis suggests that Campbell Soup's second fiscal quarter of 2025 (F2Q25) earnings per share (EPS) may decline due to increased promotional activities and brand investments.
""CPB's F2Q25 looks pressured as higher promotional and brand investments now drive year-over-year EPS down, though we do still model modest F2Q25 EBIT growth," the firm said.
The firm noted that the heightened spending by Campbell Soup is offset by cost savings that surpassed expectations and the positive performance of the Rao's brand. Additionally, lower than anticipated interest expenses contributed to the financial outlook. Although a decrease in F2Q25 EPS is expected, the firm forecasts an average gain of 7-8% in EPS for the following six quarters.
Consequently, Piper Sandler has adjusted its full-year 2025 EPS estimate from $3.21 to $3.14 and for 2026 from $3.38 to $3.33. The $56 price target is based on an approximate 16 times the projected 2026 EPS. The analysis reflects a detailed consideration of the company's financial health and market position, taking into account the various factors that could impact its performance in the short and medium term.
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