Jefferies cuts Campbell’s stock price target on snacks pressure

Jefferies has reduced its price target for Campbell's stock to $20.00 from $22.00, while keeping a Hold rating. The firm highlighted fourth-quarter fiscal 2026 results that were in line with expectations, citing solid volume growth in meals and beverages, but pressure in snacks and margin compression across the business. Campbell's announced a 36% cut in its dividend, marking the first time in 56 years they've reduced it, though the stock still yields 7.2%.

The company's fiscal 2027 guidance fell short of expectations due to snacks business struggles and pricing actions that will limit volumes. AI analysis suggests CPB is undervalued currently, joining other stocks on the platform's Most Undervalued list. The firm attributes inflation as a factor pressuring margins. The recovery in the snacks segment remains uncertain, with management remaining cautious about the stock due to these headwinds.