First Read: The Campbell's Company "Better Profit Offsets Weaker Organic..."

Research evidence excerpt

First Read: The Campbell's Company "Better Profit Offsets Weaker Organic..."

Global Research

8 June 2026ab

First Read

EquitiesThe Campbell's Company

Better Profit Offsets Weaker Organic Sales; FY26 United States

Guidance Reiterated Food Products

12-month rating Sell

12m price target US$19.00

Initial Reaction: Mixed

Despite the stock rallying over the past two weeks, our conversations suggested

sentiment continued to lean negative, with tracked trends across both Snacks and M&B Price (05 Jun 2026) US$21.68

continuing to slow. More importantly, with the salty snack recovery taking longer to RIC: CPB.O BBG: CPB US

materialize than expected, alongside a more elevated input cost environment, investor

Trading data and key metrics

focus has increasingly shifted toward the earnings power of the business looking ahead.

Against this backdrop, we think that the print this morning will be viewed as mixed. 52-wk range US$34.27-20.00

CPB delivered modest EPS upside as stronger OPM and a favorable tax rate more than Market cap. US$6.46b

offset weaker-than-anticipated organic sales growth (-4% vs. Street -3%). The company Shares o/s 298m (COM)

maintained their outlook for the year, which may be viewed as optimistic, particularly on Free float 87%

the top line considering it would imply a significant improvement exiting the year. Avg. daily volume ('000) 8,887

Beyond FY26, the company noted that should oil stay around $100 per barrel, the Avg. daily value (m) US$188.3

company would expect to see incremental inflation 2-3% above typical base inflation. Common s/h equity (07/26E) US$4.09b

There are clearly many moving pieces and with short interest high, we would not be P/BV (07/26E) 1.6x

surprised if shares traded marginally higher this morning (currently indicating +2.5%).