Campbell's (CPB) faces continued salty snack category weakness that will impact fiscal 2025 and 2026 earnings, and recovery will require a longer time, along with further reinvestment, BofA Securities said in a note on Wednesday.
The firm raised its fiscal 2025 adjusted earnings guidance for The J.M. Smucker (SJM) on slightly stronger coffee demand but reduced its fiscal 2026 outlook due to risks from potential tariffs on imported green coffee.
Hormel Foods' (HRL) fundamentals remain encouraging despite losses in its Rabbi Trust investment, BofA said. The company has low EPS revision risk and benefits from rising turkey prices and stable grain input costs.
The firm lowered its fiscal 2025 EPS outlook on The Brown-Forman (BF.B) due to weaker organic sales in the US, a larger-than-expected foreign exchange headwind, and resulting margin pressure.
BofA reduced its price objective on Campbell's stock to $37 from $41 and maintained an underperform rating.
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