Analysts Upgrade Campbell Soup to Buy Amid Revenue Concerns

A recent report indicates that Argus Research upgraded Campbell Soup's outlook to 'Buy' despite projecting a decrease in annual revenue and a 4.51% downside in price target. This highlights mixed sentiments among analysts regarding the company’s financial health.

Date: 22-09-2024

AI Rating: 5

The report reveals critical information about Campbell Soup, particularly regarding its financial projections.

Earnings Per Share (EPS): The non-GAAP EPS is projected to be 3.18, which provides a concrete figure for potential investors looking at profitability indicators.
Revenue Growth: The annual revenue is projected at 9,469MM, a decline of 1.73%. This decrease may raise concerns among investors as it suggests that the company may struggle to grow or maintain its revenue base.
Analyst Outlook: Analyst forecasts signal a 4.51% downside from the latest closing price, which could indicate caution in the market about Campbell Soup's immediate future.

In terms of institutional sentiment, there has been a noted increase in the number of funds or institutions reporting positions in Campbell Soup, with a 0.49% increase in ownership over the last quarter. However, this slight uptick is countered by the fact that the average portfolio weight of all funds in the company stands at 0.16%, with total shares held increasing by 6.60%.

Some notable investors have increased their positions, such as Beutel, Goodman & Co, which raised its ownership by 15.90%. However, Van Eck Associates decreased its portfolio allocation in the company despite holding a significant number of shares.

In conclusion, while the upgrade to ‘Buy’ is a positive signal, the projected revenue decline and downside potential in stock price highlight a cautious environment for potential investors.

Stocks: CPB