Campbell Soup (CPB) Stock Forecast & Price Target

The Campbell's is well positioned for a constructive outlook because its meals and beverages portfolio is showing resilient demand, with organic segment sales up 3% on volume/mix gains and semi-scratch cooking consumption rising 5.0%, led by Swanson, Pacific, and Rao’s. Management’s new $500 million cost-savings program through FY30, including more than $100 million expected in FY27 and a 13% headcount reduction, should support margin recovery while the 36% dividend cut frees about $170 million annually for debt reduction. Although snacks remain pressured, the company’s strong brand set and plans to sharpen Goldfish and better-for-you launches, combined with a target leverage ratio near 3.0x from 4.3x today, underpin the positive fundamental view.

The Campbell's is facing a difficult reset because F4Q results were only broadly in line and FY27 guidance pointed to a 2-4% organic sales decline, with ongoing Snacks weakness, elevated inflation, and logistics costs overwhelming pricing and cost savings. Snacks remains the key drag, with F4Q organic net sales down 6% and operating earnings down 34%, while management does not expect consumption to return to positive territory in FY27 and sees F1Q as the trough. Although Meals & Beverages is more resilient and pricing on about 60% of the portfolio should help margins later, gross margin is still expected to fall 50-100 bps, adjusted EBIT to drop 7-12%, and adjusted EPS to decline 17-24%, limiting confidence in a near-term recovery.