Campbell's Company Faces Potential Earnings Risk Due To Consumer Challenges: Analysts

Group 1 - Campbell's Company CPB shares are trading lower, with RBC Capital Markets analyst Nik Modi reiterating a Sector Perform rating and a price forecast of $51 [1] - Despite a challenging consumer environment, management maintains FY25 guidance, expecting steady growth in sales and market share in the second quarter and into the second half of the year [2] - Analyst Modi adjusted FY25 net sales growth estimates to +9.2%, while organic sales growth is projected at +0.4%, down from +0.7% [3] Group 2 - Analyst Lavery from Piper Sandler reiterated an Overweight rating with a price forecast of $56, citing a cautious outlook on the packaged food category [4] - Lavery forecasts a decline in EPS for the second quarter of 2025 but projects average gains of 7-8% over the next six quarters, lowering FY25 EPS estimate from $3.21 to $3.14 and FY26 EPS from $3.38 to $3.33 [5] - In the second quarter of 2025, sequential improvement in volume and share gains is anticipated [6] Group 3 - Campbell's Company is investing in Rao's innovation and marketing in FY25, focusing on expanding into white sauces for greater production flexibility and potential geographic expansion in Canada [7] - CPB shares are currently trading lower by 0.49% to $42.48 [8]