$CPB

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Campbell's Path to Sustained Recovery Uncertain, UBS Says

Campbell's (CPB) 2027 outlook appears achievable on relatively measured assumptions, but continued pressure and uncertainty around underlying demand make it difficult to view the setup as fully de-risked, UBS Securities said.The company expects 2027 organic sales to decline 2% to 4% and adjusted EPS of $1.65 to $1.80, below Street expectations of $1.83.UBS said in a note Thursday the lower bar should limit the risk of another meaningful reset, but a meaningful portion of the second-half improvement depends on cost savings and pricing initiatives.The investment firm said the key question is whether those actions can drive sustained improvement exiting 2027 and into 2028.UBS maintained its sell rating on the stock and raised its price target to $19 from $18.Shares of Campbell's were down 3% in Friday trading.Price: $21.46, Change: $-0.67, Percent Change: -3.03%

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Wire9d ago

Campbell's Faces Another Tough Year as Headwinds Deepen, RBC Says

Campbell's (CPB) is heading into another difficult year as the company's fiscal 2027 guidance points to persistent revenue and profit pressure, with weakness in snacks and elevated cost inflation expected to continue, RBC Capital Markets said Friday in a report.Campbell's 36% cut to its quarterly dividend to $0.25 a share underscores the strain on the business and marks a reversal from management's reaffirmation of the payout in fiscal Q3, the report said. While the move frees up roughly $170 million annually for cash flow and debt payments, "the reversal in messaging will likely hurt confidence with income-oriented investors," RBC said.The packaged-food company faces a similar degree of headwinds in fiscal 2027 as in Q4, with management expecting organic net sales to fall 2% to 4% and gross margins to decline 50 to 100 basis points for the year, RBC said.The launch of a new enterprise-wide savings program targeting $500 million by fiscal 2030 shows Campbell's is taking steps to rebuild margins, with more than $100 million in savings expected in fiscal 2027, the report said.RBC lowered its price target on Campbell's stock to $19 from $21 and maintained its sector-perform rating."We knew the path to recovery would not be straightforward, and we remain in wait-and-see mode amid what continues to be a reset period for the company, though we think management is doing the right things," the report said.Price: $21.46, Change: $-0.67, Percent Change: -3.03%

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US Markets10d ago

Update: Dow Marks Best Day in More Than 4 Weeks as Rate Hike Bets Ease

(Updates with market moves at the end of the day, and other changes, if any.)The Dow Jones Industrial Average and the S&P 500 rose the most in more than four weeks on Thursday as traders tempered expectations for a September interest rate hike.The Dow advanced 1.2% to close at 53,686.11, while the S&P 500 climbed 1.1% to 7,747.71 -- both marking their biggest single-day percentage gains since Aug. 4. The Nasdaq Composite rose 1.4% to 26,584.06. Most sectors ended in the green, led by consumer discretionary, while energy saw the biggest drop.Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.Markets are now almost evenly split between a tighter policy later this month and another Fed pause, according to the CME FedWatch tool. The probability of a 25-basis-point rate hike was 63% on Wednesday."The relatively quick and notable reaction in the market to the latest Fed commentary suggests investors were already skeptical of the Fed's intentions to move forward with firmer policy as early as later this month," Stifel Chief Economist Lindsey Piegza said in a note e-mailed to.Treasury yields were lower, with the two-year yield down 4.6 basis points at 4.34% and the 10-yield yield falling 2.2 basis points to 4.77%.West Texas Intermediate crude oil was up 0.8% at $91.72 a barrel in Thursday late-afternoon trade, while Brent edged up 0.2% to $95.80.The Kuwaiti military said Thursday it was confronting missile and drone attacks from Iran.Earlier this week, the US Central Command said that its forces completed a wave of strikes against Iranian military targets.In company news, shares of Broadcom (AVGO) fell 2.7% after releasing its latest financial results. The chipmaker's guidance that its artificial intelligence revenue will double in fiscal 2027 was slightly below Wall Street's consensus but the company is likely to "handily" top the projection, Truist Securities said in a note.Snowflake (SNOW) jumped nearly 17% as the cloud-based data platform lifted its full-year product revenue outlook.Ciena (CIEN) was the worst performer on the S&P 500, down 10%, despite raising its full-year revenue outlook as the networking systems and software company reported better-than-expected fiscal third-quarter results.Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut quarterly dividend. The stock slumped 7%.In economic news, US job cut announcements in August hit the lowest total for the month in four years, Challenger, Gray & Christmas said, ahead of the official jobs report due Friday.The US economy likely added 55,000 nonfarm jobs in August, compared with a loss of 23,000 reported for the month prior, according to a Bloomberg poll. The unemployment rate seen holding at 4.1%.Spot gold rose 2.1% to $4,471.47 per troy ounce, while silver advanced 3.2% to $67.58 per ounce.

Dow JonesNasdaq CompositeS&P 500$AVGO$CIEN$CPB$SNOW

Sectors10d ago

Sector Update: Consumer Stocks Mixed Late Afternoon

Consumer stocks were mixed late Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) decreasing 0.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 1.6%.In corporate news, Lands' End (LE) shares fell 2.8% after it lowered the higher end of its fiscal 2026 revenue guidance.John Wiley & Sons (WLY) shares gained 2% after it reported fiscal Q1 results above analyst estimates.Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut its quarterly dividend. Shares dropped past 8%.Tyson Foods (TSN) reduced its fiscal 2026 revenue growth guidance to a range of 1.5% to 2% from the previous range of 2.5% to 3.5%, the company said Thursday. Shares fell past 7%.

$CPB$LE$TSN$WLY

Wire10d ago

Top Midday Decliners

Ultragenyx Pharmaceutical (RARE) said late Wednesday a phase 3 study of apazunersen in Angelman syndrome did not meet its primary endpoint nor a key secondary endpoint.Shares slumped 45% as intraday trading volume catapulted to over 19.8 million from a daily average of about 2.4 million.Tyson Foods (TSN) reduced its fiscal 2026 revenue growth guidance range to 1.5% to 2% from 2.5% to 3.5% previously, the company said Thursday.Shares fell 7.2%, with intraday trading volume of over 4.1 million, versus a daily average of about 3.3 million.Campbell's (CPB) shares dropped 8% after the company guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut its quarterly dividend on Thursday.Trading volume grew to more than 27.2 million from a daily average of almost 8.0 million.Price: $14.72, Change: $-11.82, Percent Change: -44.53%

$CPB$RARE$TSN

Sectors10d ago

Sector Update: Consumer Stocks Mixed in Afternoon Trading

Consumer stocks were mixed Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) fractionally lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 1.8%.In corporate news, Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut its quarterly dividend. Its shares fell 9%.Tyson Foods (TSN) reduced its fiscal 2026 revenue growth guidance to a range of 1.5% to 2% from the previous range of 2.5% to 3.5%, the company said Thursday. Its shares fell past 7%.BofA Securities lowered its price target on Ollie's Bargain Outlet (OLLI) to $105 from $115 following Q2 results. Ollie's Bargain Outlet shares were down 0.2%.

$CPB$OLLI$TSN

US Markets10d ago

Equities Jump Intraday, Yields Fall as Markets Split Over Fed's Next Move

US benchmark equity indexes were advancing intraday and Treasury yields dropped as markets remained split over the Federal Reserve's next move.The Nasdaq Composite was up 1.3% at 26,569.6 after midday Thursday, while the Dow Jones Industrial Average rose 1.1% to 53,653.9. The S&P 500 climbed 1% to 7,744.5. The indexes finished the previous trading session higher, snapping a three-day losing streak.Except materials all sectors were in the green intraday Thursday, led by consumer discretionary.Treasury yield were lower intraday, with the two-year yield down 4.8 basis points at 4.34% and the 10-yield yield falling 3.8 basis points to 4.76%.Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.Markets are now evenly split between a tighter policy later this month and another Fed pause, according to the CME FedWatch tool. The probability of a 25-basis-point rate hike was 63% on Wednesday.West Texas Intermediate crude oil rose 0.5% to $91.45 a barrel intraday, while Brent was little changed at $95.66.In company news, shares of Broadcom (AVGO) fell 2.9% intraday after releasing its latest financial results. The chipmaker's guidance that its artificial intelligence revenue will double in fiscal 2027 was slightly below Wall Street's consensus but the company is likely to "handily" top the projection, Truist Securities said in a note.Snowflake (SNOW) jumped nearly 21% as the cloud-based data platform lifted its full-year product revenue outlook.Ciena (CIEN) was the worst performer on the S&P 500, down 9.3%, despite raising its full-year revenue outlook as the networking systems and software company reported better-than-expected fiscal third-quarter results.Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut quarterly dividend. The stock slumped 9.4%.Spot gold rose 2.4% to $4,487.83 per troy ounce, while silver advanced 3.4% to $67.66 per ounce.

Dow JonesNasdaq CompositeS&P 500$AVGO$CIEN$CPB$SNOW

Sectors10d ago

Sector Update: Consumer

Consumer stocks advanced Thursday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) fractionally higher and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 1.6%.In corporate news, Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut its quarterly dividend. Its shares fell past 9%.

$CPB

Wire10d ago

Campbell's Issues Downbeat Outlook, Cuts Dividend Amid Inflation Headwinds

Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut quarterly dividend, sending the packaged food company's shares lower on Thursday.The company expects adjusted per-share earnings of $1.65 to $1.80 and a 2% to 4% decline in net sales. Analysts in a FactSet poll are looking for non-GAAP EPS of $1.83 and a revenue drop of 1%. For fiscal 2026, adjusted EPS plunged 27% to $2.17 as sales declined 5% to $9.74 billion."Our fiscal 2027 outlook reflects an external environment that we expect will remain volatile, as well as another year of elevated inflation that will continue to pressure margins, particularly in the first half," Chief Executive Mick Beekhuizen said in prepared remarks for the earnings conference call. "However, our outlook also reflects the benefits of productivity, cost savings initiatives and pricing that we expect to build throughout the year and increasingly support margin recovery."Campbell's slashed its quarterly dividend to $0.25 per share from $0.39."This action is expected to reduce annual cash outflows by approximately $170 million, which we intend to direct towards debt reduction," Chief Financial Officer Todd Cunfer said.The company's shares plunged 9.6% intraday Thursday, and have slid 23% so far this year.US inflation has been running above the Federal Reserve's 2% target for more than five years, with some Fed officials recently calling for an interest rate hike amid renewed hostilities between the US and Iran that have sent oil prices higher.US consumer sentiment dropped in August amid concerns that inflation will continue to be high for the "foreseeable future," University of Michigan said Friday.Campbell's adjusted EPS for fiscal fourth quarter ended Aug. 2 declined to $0.39 from $0.62 a year earlier. Sales dropped 8% to $2.14 billion. Both were in line with consensus estimates."Our fourth-quarter results reflected many of the same challenges we have faced in recent quarters, with profitability coming in as expected," Beekhuizen said. "Make no mistake, our results remain unacceptable. But instead of waiting for the environment to improve around us, we are addressing reality head-on."Campbell's launched a cost-cutting program to generate $500 million of savings by fiscal 2030. The program "will transform how the company manages and deploys its direct and indirect spending," the company said.RBC Capital Markets flagged a challenging environment for packaged food in an Aug. 31 note."With more pricing ahead for both (Campbell's) and many of its peers, we struggle to envision a positive volume backdrop for (fiscal 2027) amid consumer health that we believe has worsened in recent months," RBC Co-Head of Global Consumer and Retail Research Nik Modi wrote in the note.Last month, food company Hormel Foods (HRL) lowered its fiscal 2026 sales outlook as it reported mixed third-quarter results, with the top line pressured amid a challenging consumer environment. Flowers Foods (FLO) cut its full-year outlook and reported lower-than-expected fiscal second-quarter results. J.M. Smucker (SJM), another food producer, lifted its full-year outlook and reported stronger-than-expected fiscal first-quarter results, with earnings getting a boost from tariff refunds.Price: $21.76, Change: $-2.03, Percent Change: -8.52%

$CPB$FLO$HRL$SJM

Sectors10d ago

Sector Update: Consumer Stocks Mixed Premarket Thursday

Consumer stocks were mixed premarket Thursday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) 0.1% lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) up 0.4%.Campbell's (CPB) shares were down more than 6% after the company reported lower fiscal Q4 adjusted earnings and net sales, and cut its quarterly dividend.Victoria's Secret (VSXY) stock was down more than 6% even after the company posted higher fiscal Q2 adjusted earnings and net sales, and raised its fiscal 2026 net sales outlook.Tilly's (TLYS) shares were up more than 33% after the company reported fiscal Q2 earnings that almost tripled amid a jump in net sales.

$CPB$TLYS$VSXY$XLP$XLY

Sectors10d ago

Sector Update: Consumer

$CPB

US Markets10d ago

Stocks Mostly Down Pre-Bell as Investors Monitor Latest Middle East Developments

US equity markets were mostly pointing lower before the opening bell Thursday as traders continue to monitor the latest developments in the Middle East.The S&P 500 edged down 0.1%, and the Nasdaq was off 0.2% in premarket activity, while the Dow Jones Industrial Average nudged 0.1% higher. The indexes finished the previous trading session in the green, snapping a three-day losing streak.President Donald Trump told reporters on Wednesday that renewed attacks against Iran aren't likely to last "too long," according to multiple media outlets. US forces struck Iranian military targets earlier in the week."We took out all of the new equipment that they tried to build along the Strait of Hormuz -- some defensive, some offensive," Trump reportedly said, according to Bloomberg News. "It was a very heavy attack last night, and we're prepared to do another one any time we want."Top officials in the Trump administration are seeking to prevent the war with Iran from escalating ahead of November's midterm elections, while considering ramping up military action after the vote, Reuters reported Wednesday, citing people familiar with the discussions.Kuwait's army said Thursday it was intercepting missile and drone attacks from Iran targeting US bases in the country, CNBC reported.West Texas Intermediate crude oil rose 1.7% to $92.52 a barrel before the open, while Brent increased 1.6% to $97.16.Treasury yields were trending lower in premarket action, with the two-year rate retreating 1.1 basis points to 4.38% and the 10-year rate decreasing 0.8 basis points to 4.79%.Federal Reserve Bank of New York President John Williams told CNBC in an interview on Wednesday that the recent spike in Treasury yields reflects a strong economy, not market dysfunction.Employers in the US announced 52,881 layoffs in August, up 58% from the month prior but down 38% year over year, according to Challenger, Gray & Christmas' latest report. US private sector employment grew at its slowest pace in seven months in August, ADP (ADP) data showed Wednesday.Thursday's economic calendar also has the weekly jobless claims bulletin and the international trade in goods and services report for July at 8:30 am ET. The purchasing managers' index composite final report from S&P Global (SPGI) for August is out at 9:45 am, followed by the Institute for Supply Management's services index for the same month at 10 am.Federal Reserve Governor Christopher Waller is scheduled to speak at 8:30 am, while Cleveland Fed President Beth Hammack speaks at 3 pm.Shares of Broadcom (AVGO) and Hewlett Packard Enterprise (HPE) declined 3.3% and 3.7%, respectively, pre-bell after reporting their latest financial results. Snowflake (SNOW) jumped 24% as the firm lifted its full-year product revenue outlook.Ciena (CIEN), Toro (TTC), Campbell's (CPB) and Victoria's Secret (VSXY) are expected to release their quarterly earnings before the bell, among others. Zscaler (ZS), Guidewire Software (GWRE), Lululemon Athletica (LULU), DocuSign (DOCU) and UiPath (PATH) post their results after the markets close.Gold gained 1.2% to $4,469 per troy ounce, while bitcoin increased 0.5% to $77,597.

Dow JonesNasdaq CompositeS&P 500$AVGO$CIEN$CPB$DOCU$GWRE$HPE$LULU$PATH$SNOW$TTC$VSXY$ZS

Wire13d ago

Campbell's Faces Challenging Packaged-Food Environment, RBC Says

Campbell's (CPB) continues to face a challenging environment for packaged food, with weakening consumer health likely to weigh on volume growth in fiscal 2027, RBC Capital Markets said in a Monday note.On-the-ground checks from RBC analysts show that Meals & Beverages segment sales are below plan for many retailers, according to the note. Snack lines are also under pressure, although this was largely expected, the analysts said, adding that Rao's is the only business line holding up.The company is expected to raise prices by about 3% to 5% in October or November across its Meals & Beverages and Snacks lines due to rising costs, the analysts said.RBC said other packaged-food companies are also taking price increases, though not uniformly across categories or companies. The analysts said the price increases will disrupt Campbell's path back to volume growth.The analysts said that they are more or less in line with consensus for the company's fiscal fourth-quarter 2026 results, with their revenue estimate below the low end of Campbell's guidance.The analysts added that they have not yet seen the signs of improvement needed to become optimistic about a near-term recovery.RBC's rating on the company's stock is Sector Perform, with a price target of $21.Price: $23.63, Change: $+0.23, Percent Change: +1.00%

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Wire17d ago

Campbell's Facing Challenging Q4 due to Rising Cost Pressures, Faltering Demand, UBS Says

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.Price: $23.36, Change: $+0.13, Percent Change: +0.54%

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US Markets23d ago

Flowers Foods Lowers Full-Year Outlook Following Fiscal Second-Quarter Miss

Flowers Foods (FLO) shares fell early Friday as the packaged bakery food producer cut its full-year outlook amid a challenging operating environment and reported lower-than-expected fiscal second-quarter results.Adjusted earnings are now anticipated to come in between $0.75 and $0.85 per share for fiscal 2026, down from the company's prior guidance of $0.80 to $0.90, it said late Thursday. Sales are pegged at $5.07 billion to $5.14 billion, compared with previous projections of $5.16 billion to $5.27 billion.The current consensus on FactSet is for non-GAAP EPS of $0.83 and sales of $5.17 billion. The stock dropped 4.6% in the most recent premarket activity."Given our first-half performance and the category backdrop, we are updating our full-year guidance to reflect a more conservative outlook for the balance of the year," Chief Executive Ryals McMullian said in prepared remarks available on the company's website.Flowers Foods is taking measures to strengthen its competitiveness and align resources with opportunities to generate long-term value, McMullian said. The company is also carrying out additional efforts to reduce costs and improve efficiency, the CEO added.For the three-month period ended July 18, the company's adjusted EPS declined to $0.21 from $0.30, below the Street's view for $0.22. Sales decreased 4% to $1.19 billion, as a 1.8% gain in price/mix was offset by a 5.8% drop in volume. The average analyst estimate on FactSet was for sales of $1.23 billion."Our second-quarter results reflect the continued challenges across the fresh packaged bread category, as ongoing pressure on household budgets, evolving consumer purchasing behavior, and continued competitive dynamics created a more difficult operating environment than anticipated," McMullian said. "While we expected many of these headwinds to persist, their pace and magnitude intensified during the quarter, contributing to softer demand across much of our portfolio and results that fell short of our expectations."Branded retail sales slipped 3.8% to $794.6 million amid volume declines. Revenue in the other segment fell 4.4% to $398.3 million due to inflationary pressure on consumer spending impacting store branded sales, according to the company.Looking ahead to 2027, the company acknowledged that headwinds related to commodity ingredients exposure and fuel are rising and it is implementing actions to offset some of the risk, Chief Financial Officer Anthony Scaglione said in the prepared remarks. "These actions are designed to help us navigate the current environment, improve execution, and strengthen profitability through the balance of 2026 and into 2027," Scaglione said.Campbell's (CPB), which offers a variety of breads and sweet baked goods under the Pepperidge Farm and other brands, is scheduled to release its latest quarterly results next month. In July, Conagra Brands (CAG) issued a full-year earnings outlook below market estimates after recording mixed fiscal fourth-quarter results.

$CAG$CPB$FLO

Sectors24d ago

Sector Update: Consumer Stocks Fall Late Afternoon

Consumer stocks declined late Thursday afternoon with the State Street Consumer Staples Select Sector SPDR ETF (XLP) falling 1.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) dropping 1.6%.In corporate news, Walmart's (WMT) fiscal Q2 US comparable sales growth decelerated more than Wall Street expected amid a pharmacy-related headwind, while the retail giant issued a soft earnings outlook for the current quarter. The shares fell 9.1%.Advance Auto Parts' (AAP) fiscal Q2 comparable sales unexpectedly declined amid weakness in the do-it-yourself channel, although the retailer lifted its full-year earnings outlook. The shares tumbled 26%.Campbell's (CPB) is heading into a difficult fiscal 2027 as weakening demand, pressure in snacks, higher costs and continued reinvestment weigh on earnings, though lower fuel costs and recent tariff developments may offer some relief, UBS Securities said. Campbell's shares eased 0.3%.Etsy (ETSY) is positioned for durable growth amid better-than-projected strategy execution and as third-party data continue to imply "conservative" guidance, BofA Securities said. Etsy shares rose 1.8%.

$AAP$CPB$ETSY$WMT

Wire24d ago

Campbell's Faces Sharper FY27 Earnings Pressure Amid Weak Demand, UBS Says

Campbell's (CPB) is heading into a difficult fiscal 2027 as weakening demand, pressure in snacks, higher costs and continued reinvestment weigh on earnings, though lower fuel costs and recent tariff developments may offer some relief, UBS Securities said Thursday in a report.UBS cut its fiscal 2027 earnings estimate to $1.72 a share from $1.86, below the Visible Alpha consensus of $1.86, citing softer consumption trends and inflation that may remain near the high end of Campbell's mid-single-digit forecast.UBS expects trends in Campbell's meals and beverages segment to look similar to fiscal 2026, while snacks could stay under pressure, especially if the company raises prices to protect profitability.Inflation may stay elevated, and added investment along with higher incentive-compensation costs could lead to a meaningful drop in operating profit next year, the report said.Fiscal Q4 and full-year results are due Sept. 3.UBS raised its price target on Campbell's stock to $18 from $17 and maintained its sell rating.Price: $23.48, Change: $-0.33, Percent Change: -1.41%

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Research82d ago

William Blair Initiates Campbell's at Market Perform

Campbell's (CPB) has an average rating of hold and mean price target of $19.41, according to analysts polled by FactSet.

$CPB

US Markets95d ago

J.M. Smucker's Cost Inflation Outlook 'Relatively Benign' Despite Iran War Headwinds, Morgan Stanley Says

J.M. Smucker's (SJM) cost inflation outlook was "relatively benign" despite headwinds from the ongoing Middle East conflict, with the food producer confident of managing the pressure, Morgan Stanley said in note e-mailed Wednesday.On Tuesday, J.M. Smucker Chief Financial Officer Tucker Marshall said the Jif peanut butter maker expected cost inflation of low-single-digits for the year, excluding green coffee and tariffs.Morgan Stanley said it was "somewhat surprised by the relatively benign" cost outlook following the US-Israel war with Iran, compared with Campbell's (CPB) projection for a mid-single-digit percentage increase.The Iran war started at the end of February, disrupting energy shipments through the crucial Strait of Hormuz and leading to broad-based inflation concerns."While (the cost inflation outlook) could ultimately end up higher depending on the duration of the conflict, (J.M. Smucker's) management sounded confident in its ability to manage through the pressure," Morgan Stanley said in a note to clients. "We do not view it as a major issue given flexibility/conservatism elsewhere in the guide."The brokerage raised its price target on the J.M. Smucker stock to $110 from $106 while maintaining its equal-weight rating.The company's shares were up 3.4% in Wednesday afternoon trade, bringing its year-to-date gains to 19%."(J.M. Smucker) also framed the outlook as prudent several times, which appears particularly true on the topline, with (2027) sales guided down 3% to 4%, including (first-quarter roughly) flat, implying a steep deceleration post-(first quarter) as lower coffee prices flow through with very limited volume elasticity assumed," Morgan Stanley said.J.M. Smucker's margin visibility seems solid, mainly driven by the coffee segment, which is expected to benefit from the mechanical lap of tariffs and lower green coffee costs, despite headwinds related to lower prices and volume reduction, the brokerage said. Potential tariff refunds could also be another source of possible upside for the Folgers and Cafe Bustelo coffee brands owner, according to the note.Morgan Stanley raised its fiscal 2027 earnings estimate for J.M. Smucker to reflect its robust fourth-quarter results and lower-than-expected cost pressure.Price: $116.02, Change: $+3.63, Percent Change: +3.23%

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