Campbell Soup Recall: What to Know as Campbell’s Pulls Soup for Contamination and How to Play CPB Stock Here
The U.S. Department of Agriculture has issued a nationwide health alert after finding tiny pieces of wood in cilantro that popular brands, including The Campbell’s Company (CPB), use in some of their soups.
The contaminated products “should be thrown away or returned to the place of purchase,” the agency’s Food Safety and Inspection Service (FSIS) urged in a statement on Monday.
Still, CPB shares are comfortably in the green at the time of writing.
What USDA’s Health Alert Means for Campbell Stock
USDA’s health alert is significant as it could have financial implications for Campbell’s.
For starters, it could lead to decreased consumer trust, potentially hurting the company’s sales in the coming quarters. Plus, the Nasdaq-listed firm may now have to deal with higher costs related to pulling products off shelves, compensating retailers, and addressing legal or regulatory issues.
All of it could feed right into TD Cowen’s dovish view on Campbell stock that’s already down about 7.7% versus the start of 2025.
Last week, the firm’s analyst Robert Moskow lowered his price target on CPB to $36, indicating potential downside of another 5% from current levels.
CPB’s Financials Do Not Encourage Investment
Investors are recommended to tread with caution on Campbell shares as the Camden-headquartered firm wasn’t doing all that well even without the FSIS overhang.
In March, the canned soup products company reported weaker-than-expected sales for the second quarter and warned of continued softness through the remainder of its current financial year.
At the time, Campbell lowered its expectations for sales growth from up to 11% to a maximum of 8% only in 2025. The food company now sees its adjusted per-share earnings falling in the range of $2.95 to $3.05 – also down from the $3.22 it guided for in December 2024.
Should You Buy Campbell Shares in April?
Heading into Monday, Wall Street had a mean target of $41.55 on Campbell stock, which translates to about 9% upside from current levels.
However, analysts may revise their estimates depending on how the USDA situation unfolds in the coming days. Plus, the lackluster financials also suggest there may be better names out their than Campbell’s for exposure to the U.S. food industry.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.