Campbell's (CPB) is facing a challenging fiscal Q4 due to mounting cost pressures and ongoing demand weakness, UBS said in a Thursday research report.
UBS said it expects fiscal Q4 EPS of $0.38, an organic sales decline of 0.2%, and gross margins of 28.2%. For fiscal 2027, it expects EPS of $1.72. The company is due to report fiscal Q4 results on Sept. 3.
UBS said it sees downside to Street numbers for next year, but highlighted an emerging dynamic where a reset of expectations could lead to outperformance, given an undemanding valuation and the lack of a near-term negative catalyst.
UBS reiterated its sell rating on the stock with a price target of $18.
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