The Campbell's Company "Cooking with Higher Costs; Stay Sell" (Sell) Grom

Research evidence excerpt

The Campbell's Company "Cooking with Higher Costs; Stay Sell" (Sell) Grom

Global Research

8 June 2026ab

The Campbell's Company Equities

United StatesCooking with Higher Costs; Stay Sell

Food Products

12-month rating Sell

Mixed Quarter, But Guidance and '27 EPS Power In Question; Stay Sell

Earlier this morning CPB reported a 3Q beat as stronger GM/OPM more than offset 12m price target US$17.00

weaker topline performance (-4.0% vs. -3.3% Street). As for the outlook, the company Prior : US$19.00

reiterated its FY26 guidance across the board (see details below), which we think looks

Price (08 Jun 2026) US$21.49

somewhat aspirational on the top line even after accounting for some timing related

factors. Beyond FY26, much of the conversation has shifted to earnings power in FY27 RIC: CPB.O BBG: CPB US

and to that end management emphasized that inflation would likely be in the +MSD

Trading data and key metrics

range (+3% and +2-3% of incremental inflation) if oil prices were to stay at $100/barrel.

52-wk range US$34.07-20.00

When layering in additional discrete headwinds from a higher share count and a reset of

incentive compensation, we think it is clear that FY27 is shaping up to be a challenging Market cap. US$6.41b

year on the bottom line with the magnitude of pressure dependent on where inflation Shares o/s 298m (COM)

ultimately lands, pricing/RGM, and how much productivity/cost savings the company Free float 87%

can generate looking ahead. Shares continue to screen as cheap vs. history but with top Avg. daily volume ('000) 8,848

line pressures likely to persist looking out to FY27 and little signs that a return to EPS Avg. daily value (m) US$187.6

growth is on the horizon, we think the risk/reward continues to skew to the downside. Common s/h equity (07/26E) US$4.06b