Deutsche Bank Cuts Campbell’s Target to $20
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Deutsche Bank lowered its price recommendation on Campbell’s Company to $20 from $23 and kept a Hold rating on March 30.
- Deutsche Bank cited "legitimate and widespread pressures building" across the consumer packaged goods industry, partly due to the Middle East conflict, as reasons for the downgrade.
- Campbell’s Company underperformed in March, with rising input costs, consumer trading‑down risk, and currency headwinds weighing on its stock.
- CFO Todd Cunfer said Q3 net sales are expected to track broadly in line with Q2, and Q4 should see a typical step‑down, requiring about $0.90 in second‑half earnings to hit the midpoint of guidance.
- Management projected a roughly 4% decline in Snacks net sales in the second half of the fiscal year.
- Management expects Q4 margins to improve despite no meaningful sequential increase in net sales, and Meals & Beverages pricing to stay positive but at a slower pace.
Why it matters: Investors in Campbell’s face a near‑term valuation hit as Deutsche Bank slashes the price target by $3, while the company’s projected 4% snack‑sales decline and modest Q4 margin lift signal tighter earnings pressure, potentially limiting upside for dividend‑seeking shareholders in the near term.
Ask SkimNews
