Some two and a half weeks since the ‘3D printed meat’ controversy involving the former vice president, Campbell’s (NASDAQ: CPB) shares are sitting at their 16-year low.
Changing hands at $28.58 at the time of writing, December 12, the figure not seen since the 2009 financial crisis marked by collapsing consumer demand and market stress, Campbell’s stock is down nearly 7% since the news of the scandal first broke.
As such, the ongoing slump has erased all gains made over the past four years, as the stock is trading well below its 2022 and 2023 averages.
With the company facing severe pressure, analysts are accordingly revising their Campbell’s stock price targets, projecting a rather mixed outlook for the next year.
Wall Street mixed on Campbell’s stock price targets
Most recently, on December 11, DA Davidson reiterated its “Neutral” rating but lowered Campbell’s stock price target from $32 to $30 following the company’s first-quarter fiscal 2026 results.
The firm cited ongoing weakness in consumer spending across the food sector, warning that it could weigh on Campbell Soup’s as well. Likewise, the note pointed to intensifying competition in the soup and salty snacks division as key reasons for its cautious view.
Looking ahead, DA Davidson said that marketing and product activation in the following quarter will be crucial in determining whether Campbell can keep its fiscal 2026 outlook on track.
A day earlier, on December 10, Deutsche Bank adjusted its CPB price target to $31 from $33, maintaining a “Hold” rating, while RBC Capital cut its projected figure from $35 to $30, with a “Sector Perform” rating.
RBC argued that Campbell’s first-quarter fiscal results were “better than feared,” but still beyond what was expected based on overall business trends. Most noteworthy challenges cited were again the snacks segment, and the analysts argued that the management might have to cut prices to remain competitive.
Is the Campbell’s stock controversy a buying opportunity?
On December 10, Bernstein lowered Campbell’s share price target from $39 to $33, albeit with a “Buy” rating. Unlike RBC, Bernstein believes the company’s products generally align with current consumer trends, especially the meals and beverages division.
While the argument might appear to hint at the ongoing situation being a buying opportunity, other analysts are overwhelmingly of the opinion that the stock is a “Hold.” Stifel Nicolaus, for instance, lowered the CPB price outlook from $34 to $30 on the same day, while Wells Fargo trimmed it from $31 to $30, both opting for a “Hold” grade.
Indeed, Bernstein and Stephens (which lowered the price from $40 to $38 last Wednesday) are the only two investment firms with a “Buy” rating overall, judging by a total of 15 analyst positions aggregated on TipRanks, of which ten are “Hold” and three “Sell” ratings.
However, despite all the negative revisions, the average CPB stock price target for the next 12 months still has an upside potential of 8.47% from the current price, as per the same platform, sitting at $31.13.
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