Campbell Soup (CPB) Stock Forecast & Price Target

The Campbell's is positioned favorably because its Meals & Beverages segment posted 3% organic sales growth, helped by 12% broth consumption growth and 10% growth at Rao’s, while semi-scratch cooking now represents more than half of Meals & Beverages retail sales with a 4-year CAGR above 5%. Its broad portfolio of trusted brands, combined with demand for convenient and affordable at-home meal solutions, supports resilience in a competitive packaged food market and gives it multiple avenues to capture shifting consumer preferences. Management’s enterprise-wide savings program targeting $500M by FY’30, with more than $100M expected in FY’27, and actions such as 2 Snacks plant closures and a ~13% salaried headcount reduction, should strengthen margins and support earnings durability.

The Campbell's is facing a difficult reset because FY27 guidance points to a 2-4% decline in organic sales, a 7-12% drop in adjusted EBIT, and a 17-24% decrease in adjusted EPS, reflecting weak volume, inflation, and pricing that may not fully offset cost pressure. Snacks remains the biggest drag, with F4Q organic sales down 6%, management expecting no return to positive consumption in FY27, and intense competition in salty snacks and chips limiting recovery. Although the $500m cost-savings plan and 36% dividend cut should aid deleveraging, they also underscore strain, while 5-6% commodity inflation and double-digit logistics costs leave margins vulnerable and visibility limited.